What Is a Qualified Institutional Buyer (QIB) and how do they fit in Rule 144A investment offerings?
What Is a Qualified Institutional Buyer (QIB)?
A Qualified Institutional Buyer (QIB) is an institutional investor and as a result, the SEC does not require the regulatory protections that the SEC registrations have put in place for Mainstreet investors.
QIBs are institutional investors that own or manage at least $100 million worth of securities or are registered broker-dealers with at least a $10 million investment in unrelated securities.
The SEC allows QIBs to trade Rule 144A securities for the first 6 months after their purchase, and after the 6-month point, accredited investors are also allowed to buy and sell the Rule 144A securities.
See our brief description of Rule 144A investment offerings