The private investment in public equity (PIPE) market is one of the most attractive markets for qualified individual investors and accredited institutional funds. Since the late 1990s, PIPE transactions have increased dramatically, raising $105 billion in equity capital in the past two years. In 2010 alone there were a total of 1,203 PIPE transactions. Top Wall Street executives are increasingly becoming involved in PIPE transactions as placement agents. For investors, PIPEs have become attractive due to the regulatory challenges in making control investments such as private equity or venture capital. Because PIPEs involve less stringent SEC regulations and do not require public offerings, the arrangements are time- and cost-efficient, thus making them attractive to public companies. During the 2008 credit crisis, when companies could not access stock markets, they depended on PIPE transactions to quickly raise capital. A PIPE agreement is a directly negotiated transaction between an accredited investor and an issuer, a publicly traded company. PIPEs have been tapped by small to mid-sized companies in industries that need frequent financing and by mature companies seeking growth capital. Small and medium-sized businesses find it expensive to obtain financing from traditional equity financing. PIPE transactions provide a quick and easy solution to their capital requirements. PIPEs help the expansion, restructuring or acquisition of mature companies. In a PIPE deal, the issuer offers a stake in the company to the investor in exchange for capital. The participation can take the form of ordinary or preferred shares, convertible bonds or warrants, newly issued directly from the company's treasury. It is sold to the investor at a discount of up to... half the paper... passive. Unlike the company's other shareholders, they do not control the company's board of directors, business decisions, or liquidity events.2. Liquidity: Generally, PIPE investments offer short-term liquidity as part of the resale registration process. However, in some PIPE investments, the company requires the investor to limit the resale of securities to a specific period of time. PIPE investments differ from other forms of investments, namely private equity or venture capital, in the aforementioned liquidity and transaction control dynamics. . PIPEs represent a unique investment avenue that offers investors many benefits. As the PIPE market grows, investors can take advantage of growing opportunities to invest in a wide range of companies. PIPE transactions are excellent investment vehicles that provide returns and marketability for a passive, long-term investor.