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Syndication

July 31st, 2009

A number of investors offering funds together as a group on a particular deal. A lead investor often coordinates such deals and represents the group’s  members. Within the last few years, syndication among angel investors (an angel alliance) has become more common, enabling them to fund larger deals closer to those typifying a small venture [...]

Syndicate

July 31st, 2009

Underwriters or broker/dealers who sell a security as a group. (See Allocation)

Sweat Equity

July 31st, 2009

Ownership of shares in a company resulting from work rather than investment of capital–usually founders receive “sweat equity”.

Subordinated Debt

July 31st, 2009

A financial instrument with qualities of both debt and equity, often used in transactions as an alternative, or complement to, pure equity.

Succession Plan

July 31st, 2009

The basis for transfer of business ownership from one generation of managers to the next, often with the assistance of private equity.

Subscription Agreement

July 31st, 2009

The application submitted by an investor wishing to join a limited partnership. All prospective investors must be approved by the General Partner prior to admission as a partner.

Subordinated Debt

July 31st, 2009

Debt with inferior liquidation privileges to senior debt in case of a bankruptcy; sub debt will carry higher interest rates than senior debt, to which it is subordinated, to compensate for the added risk, and will typically have attached warrants or equity conversion features.

Strategic Investors

July 31st, 2009

Corporate or individual investors that add value to investments they make through industry and personal ties that can assist companies in raising additional capital as well as provide assistance in the marketing and sales process.

Stock Options

July 31st, 2009

1) The right to purchase or sell a stock at a specified price within a stated period. Options are a popular investment medium, offering an opportunity to hedge positions in other securities, to speculate on stocks with relatively little investment, and to capitalize on changes in the market value of options contracts themselves through a [...]

Statutory Voting

July 31st, 2009

A method of voting for members of the Board of Directors of a corporation. Under this method, a shareholder receives one vote for each share and may cast those votes for each of the directorships. For example: An individual owning 100 shares of stock of a corporation that is electing six directors could cast 100 [...]

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