Legal Definitions - placement

In legal and business contexts, placement refers to the act of successfully arranging or securing something in a particular position or role. It commonly applies to two distinct areas:

• The process of selling new financial instruments, such as shares or bonds, to investors, or the arrangement of a loan or mortgage.
• The act of finding and securing suitable employment for an individual, often facilitated by an agency or specialized service.

Here are some examples illustrating the concept of placement:

• Example 1 (Financial - Securities): A startup technology company, seeking to raise capital for product development, works with an investment bank to sell a new issue of its shares to a select group of venture capital firms. The investment bank successfully finds buyers for these shares, allowing the startup to secure the necessary funding.

  This scenario demonstrates placement because the investment bank facilitated the successful sale and distribution of the company's new securities to investors, effectively placing the shares in the hands of new owners.

• Example 2 (Financial - Loan/Mortgage): A small business owner needs a loan to purchase new equipment. They consult with a commercial loan broker who helps them navigate various lenders and ultimately secures a favorable business loan from a regional bank.

  This is an example of placement because the loan broker successfully arranged and secured a financial instrument (the business loan) for the owner with a specific lending institution.

• Example 3 (Employment): A university's career services department assists a recent graduate in the engineering program by connecting them with several companies looking for entry-level engineers. After a series of interviews, the graduate accepts a position at a prominent engineering firm.

  This illustrates placement as the career services department successfully helped the graduate find and secure suitable employment in their field, effectively placing them in a professional role.