Equity Financing Flashcards
Stocks
Ownership of or equity in a company
Equity financing
Arranging funding by selling ownership shares in the company, publicly, or privately
Securities
Investments such as stocks, bonds, options, futures, and commodities
Capital gains
Increases in the value of a stock or other asset
Preferred stock
Shares of ownership without voting rights but with defined dividends
Venture capital
Private or institutional investment (capital) in relatively early-stage companies (ventures)
Angel investors
Private individuals who invest money in startups, usually earlier in a business’s life and in smaller amounts than VCs are willing to invest or banks are willing to lend
Financial VCs
An investment firm applying capital raised from institutions and individuals
Common Stock
Shares of ownership that include voting rights