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6 Cards in this Set
- Front
- Back
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Securities and Exchange Commission (SEC)
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1933 Congress enacted SEC to protect investors from fraudulent stock issues.
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Angel investors
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the first round of external financing comes through a private placement of equity to one or two individual investors.
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Venture capital fund
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a venture capital fund is a private limited partnership, which typically raises $30 million to $80 million froma relatively small group of primarily institutional investors, including pension funds, college endowments and corporation.
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venture capitalist
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manager of a venture capital fund
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Going public
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means selling some of a company's stock to outside investors in an initial public offering (IPO) and then letting the stock trade in public market.
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Advantages of Going Public
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1. increases liquidity and allows founders to harvest their wealth
2. permits founders to diversify 3. facilitates raising new corporate cash 4. establishes a value for the firm 5. facilitates merger negotiations 6.Increases potential markets |
