Quick Definition

A Qualified Institutional Buyer (QIB) is an entity that is legally recognized to invest in securities that may not be registered with financial authorities, typically due to their financial sophistication and capacity.

Examples

• 1A large pension fund purchasing unregistered securities to diversify its investment portfolio.
• 2An investment bank acting as a QIB to acquire large blocks of shares directly from a company before they are publicly issued.
• 3A mutual fund company buying private placement bonds from a corporation as part of its investment strategy.

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