Buying stock for less than what they are worth.
Value proposition is a description of the
customer problem, the solution that addresses the problem, and the value of
this solution from the customer's perspective.
used to support new or unusual business ventures that exhibit above-average
growth rates, significant potential for market expansion and are in need of
additional financing to sustain growth or further research and development;
venture financing traditionally provided at the commercialization
stage, increasingly available prior to commercialization.
company organized to provide seed capital to a business in a formation stage, or
in its first or second stage of expansion. Funding is obtained through public or
private pension funds, commercial banks and bank holding companies, small
business investment corporations, private venture capital firms, insurance
companies, investment management companies, bank trust departments, industrial
companies seeking to diversify their investment and investment bankers acting as
intermediaries for other investors or directly investing on their own behalf.
Keep Your Computer-tired Eyes Healthy
Capital Limited Partnerships
for business development, these partnerships are institutional mechanisms for
providing capital for young, technology-orientated business. The investor's
money is pooled and invested in money market assets until venture investments
have been selected. The general partners are experienced investment managers who
select and invest the equity and debt securities of firms with growth potential
and the ability to go public in the near future.
Capital Network (VCN)
computer database that matches investors with entrepreneurs.
building a high-risk-high-return venture around a
new-to-the-world product or
Corporate vision is a short, succinct, and
statement of what the organization intends to become and to achieve at some
point in the future, often stated in competitive terms.
cash available to an enterprise for day-to-day operations. This can be a firm's
short-term investment of current assets, including cash, short-term securities,
accounts receivable and inventories.
rate of income returned on an investment, expressed as a percentage. Income
yield is obtained by dividing the current dollar income by the current market
price of the security. Net yield or yield to maturity is the current income
yield minus any premium above par or plus any discount from par in purchase
price, with the adjustment spread over the period from the date of purchase to
the date of maturity.
Requires managers to
justify their entire budget request in detail rather than simply referring to
budget amounts established in previous years.
ZOPA (zone of possible agreement)
The range of investment terms or amounts open to
possible negotiation, ranging from the lowest the entrepreneur is willing to
accept (the minimum) to the most the investor is willing to pay (the maximum).