QIP Meaning

QIP is the term which is used in stock markets, full form of QIP is Qualified Institutional Placement. Under this method a company which is listed in stock market can raise capital by issuing either equity shares, convertible debentures or any instrument other than warrant which are convertible into equity stock at a future date to qualified institutional buyers. This method is helpful when companies want to raise capital which is not the case when company wants to raise capital through IPO and also when wealthy investors are interested in buying equity of the company.