Qualified institutional buyer (QIB)

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Qualified institutional buyer (QIB) is a type of institutional investor to whom holders of securities purchased in a private placement may sell their securities under Rule 144A. Rule 144A(a)(1) defines qualified institutional buyer as, among others, insurance companies investment companies, state employee-benefit funds (e.g. pension funds), trust funds that own and invest at least $100,000,000 in non-affiliated securities; or any dealer that owns and invests at least $10,000,000 in non-affiliated securities.

[Last updated in January of 2022 by the Wex Definitions Team