Definition for : Qualified Institutional Buyers, QIB

Qualified institutional buyers are the U.S. Institutional investors that under Rule 144A, are allowed to buy securities issued by a non-American issuer. To qualify as a qualified institutional buyer a financial institution must own and manage $100 million ($10 million in the case of a registered Broker-dealer) or more in qualifying securities. For a banking institution to qualify, a $25 million minimum Net worth test must also be satisfied.

(See Chapter 26 Value and corporate finance of the Vernimmen)

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