Qualified institutional buyer
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A qualified institutional buyer (or QIB), in law and finance, is a purchaser of securities that is deemed financially sophisticated and is legally recognized by security market regulators to need less protection from issuers than most public investors. Typically, the qualifications for this designation are based on an investor's total assets under management as well as specific legal conditions in the country where the fund is located. Currently, Rule 144A requires an institution to manage at least $100 million in securities from issuers not affiliated with the institution to be considered a QIB. Additionally, if the institution is a bank or savings and loans thrift they must have a net worth of at least $25 million.
Certain private placements of stock and bonds are made available only to qualified institutional buyers to limit regulatory restrictions and public filing requirements.
[edit] See also
- Accredited investor
- Private placement
- Rule 144A
- Securities Act of 1933
- Securities and Exchange Commission
