Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.

Full ratchet: An anti-dilution protection mechanism whereby the price per share of the preferred stock of one investor is adjusted downward due to the issuance of new preferrd shares to a new investor.

Exit Buyer: A term used very frequently, referring to the “buyer in place” purchasing the bank instrument at a higher value from the current owner.

One that makes financial investments in a business enterprise but does not participate in its management.business partner who provides capital but does not actively participate in the management of operations.