BUS-W 212 Chapter Notes - Chapter 8: Private Placement, Capital Formation
Document Summary
The chapter begins with talking about the ever popular capital formation for entrepreneurs which is so important for them to find the upfront capital to gain for their venture. It then starts to talk about turning the venture public and having a public stock offering for the company. The text mentions that these offerings come with advantages and disadvantages and although it can help easily raise upfront capital for the venture, it has a drawback of allowing people to hold control and ownership in the business. The next way of raising equity for a company is from a private placement, which only really help entrepreneurs looking to find smaller loans, around the neighborhood of ,000 and under. In my own life this may one day be something that i have to do myself. If that fails and they don"t want to invest i will have to turn to the next option which is getting a bank loan.
