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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Private placement investments: certainly not for everybody

Some individuals and institutional investors are logical candidates for participation in private placement opportunities, or for at least considering such investment vehicles.

And, clearly, others aren't.

That is the essential bottom line taken from a discussion of that subject matter in an article authored by a financial education website, which clearly conveys this fundamental point: Unsuitable private placements are far from being an anomaly in the investment world, and for a number of reasons.

Like this one, for instance: There is inherently a high-risk factor linked with private placements; along with hyped-up proclamations regarding returns that are frequently made, there is concomitant upper-level risk that substantial investment capital can be lost.

And, reportedly, fraud is often a byproduct of private placement schemes. The above-cited primer cites evidence indicating that such investments "generate the highest amount of enforcement actions from state securities regulators."

And that is unsurprising, given that there is often not much information to mull over regarding securities promoted by a company in a non-public offering. Private placement is far different than a public offering, which must comply with state and federal securities requirements concerning due diligence and transparency.

There are additional risks, as well, which collectively underscore the reality that private placement is far from being an investment opportunity that any adviser or broker should casually or quickly mention as a viable strategy for most business clients.

Any individual or institutional investor concerned that a portfolio might be suffering as a result of one or more unsuitable private placements might reasonably want to contact a proven securities lawyer without delay.

There are strong state and federal remedies against investment malfeasance and fraud, and an experienced attorney with a deep well of experience advocating on behalf of defrauded investors can aggressively pursue them.

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