Virtual Data Room
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Term
Main definition
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A virtual place that is accessed electronically (via a secured website) that serves as a place to share (if disclosing information) and receive (if information is being provided) any information about a common subject.
Delivery of bulky and heavy documents is replaced with an electronic counterpart that is more functional and efficient, where material documents, instruments, contracts, plans, books, and records can be shared with a select person or persons for examination, such as a company providing a copy of its corporate books to its potential investors in connection with the due diligence investigations those investors like to make. Attorneys, accountants, investment bankers or other professionals use virtual data rooms often as administrators and users. Users of these rooms are often expressly held responsible for protecting their access credentials and passwrods. The virtual data room platforms are generally designed to assure that a data room is secured.
