need help

Gurus,

Please help me understanding below terms

* private placement shares
* promoters share

I heard people are making lot of money in these shares.

Thank in advance
Jagadeesh

whenever a new company is formed, the promoters will pool their share of capital through promoters' quota of shares. Some promotors may sell some of the shares on firm allotment through different sources. Those who apply for these shares will normally get these shares fully. But there will be some lock-in period before which they cannot be sold. This is called promoters' quota of share. If the same is done through some third party agencies, this is private placement.

But this was more prevelant during early 80's and now-a-days this practice is not available (I think)

Thanks for this crystal clear explanation.

Some more info on
> But this was more prevelant during early 80's and now-a-days this practice is not available (I think)


point might help me in understanding it more.

Another question is how do I buy or shell promoters shares. How do I find out these promoters?

During the year 1980 to 1990, the practice of offering promoters' quota was very much prevelant. but now a days I do not think that the practice is there.

During those period, even the share brokers used to send applications for the promoters' quota. Now, I don't know whether the practice is there and who will give such offers.

Thanks much for helping understanding these jargons. I think promoters shares is still alive and people are using it. I heard through friend of mine but he is not aware how to contact promoters.

Thanks