Qualified Institutional Buyer (QIB)

Definition:

As defined in Rule 144A under the Securities Act, an institution that owns or invests, on a discretionary basis, at least US$100 million in securities of issuers with whom they are not Affiliated. QIBs include banks, insurance companies, savings and loan institutions, employee benefit plans and Investment Companies. Banks must satisfy the US$100 million threshold test and a US$25 million net worth requirement. QIBs can also include registered Broker-Dealers owning or investing, on a discretionary basis, US$10 million in securities of Non-Affiliates or acting in a riskless principal transaction on behalf of a QIB. QIBs may participate in Section 4(a)(2) and Rule 144A Offerings.

Return to Glossary