In this time of crisis, we systematically wonder about its causes, which are many. These include the low margins of the corporations arising from laws promoting competition. The thin margin creates a lack of reserves, therefore a privilege of short-term over the long term. The reasoning is simple: there is no reason to think long … Leggi tutto
Financing is the act of finding solutions to bring to completion. By extension, the solution most often used being money, it represents the act of making a capital available for a project. Funding is mostly gathered from Investors by a Financier or an Investment Bank distributing securities on behalf of a company called Issuer because … Leggi tutto
Many entrepreneurs do not understand the reasons why the Initial Public Offering of a share of common stock (also known as “IPO “) makes money? The value creation of an IPO arises mainly from the difference of valuations between the private and public markets. The Private Market values the Assets. Thus, a bakery that has … Leggi tutto
A gentlemen’s agreement litterally agreement among gentlemen is an informal agreement between two or more parties. It can be written, oral, or implicit by communicating a non-verbal agreement, through an agreement or mutual benefit. The essence of a gentlemen’s agreement lies in the fact that it rests on the honor of the parties in relation to its … Leggi tutto
A company is in need of capital for any reason that it demonstrates can generate profits and amortize within a reasonable time frame. In the investor’s mind, the problem is not to provide the capital but to be certain he will retrieve it within a certain time frame. The best way to for the equity … Leggi tutto
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 … Leggi tutto
Finance The origin of the word Finance comes from the two latin words Finer which means carry out and Ansa which means solution. Financing therefore means finding solutions to carry out. In the very idea of the word, there is the notion of present or future. Economy L’Économie est donc l’étude de la répercussion. The origin of … Leggi tutto
Equity Dilution, also known as Stock Dilution or Share Dilution, is the decrease in percentage of existing shareholders’ ownership of a company as a result of the company issuing new equity. Equity dilution affects dividend, earnings voting rights and share of liquidation if any but not the value of the shareholders’ stake. This dilution can … Leggi tutto
Definition Due Diligence is an English term used to describe all procedures that verify the situation and the verbal or written statements of a legal (or physical) person. It is also the process of ensuring that the information contained in a file or in a prospectus is accurate, complete and does not lend itself to … Leggi tutto
In law of obligations, Consent is the act of pronouncing in favor of a legal act, in the broad sense, and especially of any convention, any contract. Consent is indeed the fundamental element emerging from the doctrine of the autonomy of the will: He who obliged himself, thus making himself debtor of an obligation, must … Leggi tutto
