What is a Qualified Institutional Buyer (QIB)?
A qualified institutional buyer (QIB or QUIB) is a company that manages at least $100 million of securities on a discretionary basis or is a registered broker-dealer investing at least $10 million in non-affiliate securities.
How Does a Qualified Institutional Buyer (QIB) Work?
A QIB can be an insurance company, a bank, a 401(k) plan, an employee benefit plan, a trust fund, a business development company (BDC), a charity, or even an entity owned by qualified investors. QIBs are regarded as highly sophisticated entities that do not need as much protection as less sophisticated investors or entities.
Why Does a Qualified Institutional Buyer (QIB) Matter?
QIBs are allowed to buy private placements under SEC Rule 144A. These offerings are generally not registered with the SEC, and therefore they are only available to those whom the courts have found able to "fend for themselves." Foreign issuers can also make limited offerings to American QIBs, as legally permissible.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Here are five things a successful investor must consider before investing in a newly public company...Read More →
The dumbest investing mistake I ever made was opening a Roth IRA account. It seems like a smart decision, right? Set up an account that...Read More →
With the major averages dropping like stones and investors seeing a sea of red on their computer screens, you might think there aren't any winning...Read More →
Many investors count on compounding to help them achieve financial independence. Yet many people confuse it for "average return." Brokers (who often quote the latter) don’t help the matter either...Read More →