- Deriving from the word Finance, the definition of the word Financing is therefore the Act of finding solutions to carry out.
- By extension, the most common solution being money, it represents the Act of Provision of a Capital.
- Funding is mostly gathered with Investors by a Financial or a Trader in securities on behalf of a company called Issuer because it issues securities, sold to Investors through Brokers and Traders.
The Financing Principle
The principle of financing is to exchange a capital against information and an expectation of gain more or less certain.
Here are the reasons:
- To invest, the investor needs to know that the opportunity exists.
- It must be able to evaluate the gain / risk ratio.
- Familiarity creates trust, the illusion of information and the illusion of control.
Forms of Financing
There are two main forms of financing:
- The Credit, also called Debt.
- The Contribution (of Own Funds) also called Capital or Equity.
Criteria for Admission to Financing
In order for a company to be admitted as an Issuer by a Financial Community, it must meet the following criteria:
- Operate in a buoyant market.
- Be transparent.
- Do not be a One Man Show.
- To have a Competent Management, in Team.
- Have a unique character.
- Have a Competitive Advantage.
- Being international or at least present in the country of quotation, usually the United States.
Offenlegung
Wer Kapital will, muss es jedem Interessenten zur Verfügung stellen, ohne dass dieser es verlangt. Alle wesentlichen Informationen, die es ihr ermöglichen, sich eine genaue und vollständige Meinung zu bilden oder ihr Urteil als Anleger zu beeinflussen.
PROVIDING FALSE INFORMATION, OMITTING REAL INFORMATION, FAVORABLE OR NOT DELAYS.
The Prospectus
The information is provided in the form of a Prospectus describing the Issue, more or less complete, which may have several designations:
Der Prospectus or Disclosure Document sind Oberbegriffe.
Der Summary, Abstract or Executive Summary ist eine Zusammenfassung, die sich darauf beschränken sollte, das Interesse des Investitionsinteressenten zu ermitteln.
Der PPM, Private Placement Memorandum or Private Offering Memorandum are terms designating a Prospectus describing a Private Issue.
Der Preliminary Prospectus or Red Herring is a term designating a Provisional Prospectus (without Price or Issue Date) describing a Public Issue.
Der Prospekt für öffentliches Angebot is a term designating a Prospectus describing a Public Offering.
