A system of issueing new shares to selected investors instead of the general public is?

The system of issuing new shares to selected investors instead of the general public is called a private placement. In a private placement, the company offers its shares to a small group of investors, such as institutional investors or accredited individuals, rather than making the shares available to the public at large. This method is used by companies that want to raise capital quickly without the time and expense of a public offering. Private placements are typically less expensive and less time-consuming than public offerings because the company does not have to register with the Securities and Exchange Commission (SEC) and comply with other regulatory requirements. Private placements are also more flexible than public offerings because the company can negotiate the terms of the offering with the investors, such as the price and the number of shares to be issued. However, private placements may have restrictions on the resale of the shares and are generally only available to investors who meet certain financial requirements.