BUSI 530 Chapter 15: Chapter 15
Document Summary
Chapter 15: how corporations raise venture capital and issue securities. Venture capital: money invested to finance a new firm through a pool of investors. Provided by (4: specialist venture capital firms, wealthy individuals (angel investors, investment institutions (pension funds, mature companies looking for new products and technology. Involvement (3: recruit senior managers for the company, have representation on the board of directors, provide ongoing advice, equity investment in high risk, high tech start up private companies. Business plan: describes the product, potential market, production method, and resources needed for success. Provide funds for companies in distress or buy out whole companies and then take them private. A firm goes public when it sells its first issue of shares in a general offering to investors. Firm that buys an issue of securities from a company and resells it to the public.
