Private placement is a method of raising capital where a company sells its securities directly to a select group of investors, rather than through a public offering. This process typically involves institutional investors, such as hedge funds, private equity firms, or accredited individuals, allowing companies to access funds more quickly and with less regulatory scrutiny. In a private placement, the securities offered may include stocks, bonds, or other financial instruments. This approach can be beneficial for companies seeking to maintain privacy and control over their operations, while investors often receive favorable terms compared to public offerings.