This website uses cookies to ensure you have the best experience. Learn more

Ways To Fund Essay

1217 words - 5 pages

Ways To Fund A Business
Jeremy Tyson Jarvi
American Intercontinental University Online

This paper is going to reflect how I choose to fund my business (or company). There are a few ways to raise money: Selling stock, licensing the product, and taking out loans. I will also be describing the who, what and how of each of the following: Investment Banker, Stock Market, Financial Management, and Risk Financing. I will share with you my preferred source of funds, and I’ll explain to you the risks and rewards of what I have decided to do, as it will help you better understand my thought process.

Ways To Fund A Business

An “Investment Banker” is either an individual or ...view middle of the document...

” We have seen many companies in recent years have a failure in financial management such as ENRON, where preferred stock was being sold because the big wigs knew the company was imploding, and then when it finally did the people who held lots and lots of common stock were basically left with pennies from their stock sales.

“Risk Financing” is basically money to cover the unexpected loss of money within the company. So it’s basically a fail-safe thing. That there will be something to bail out the company in case there is need for it. It’s like a reserve fund to cover those unexpected losses.

As I ended my paper last week, I chose the business form of a corporation, because you have many people with many different talents working together, I don’t have to worry about my own personal wealth or home being lost due to a business failure. But I have been thinking about it for awhile now, and I really think for me to fund my company I should sell stocks, after all what better way to make others money as well as myself and my company than to have people put their trust and confidence in my product.

So, my company has a total of 100,000,000 shares of stock. 75,000,000 of those shares are preferred stock, which means I own the majority, and they are the prime stock, which means I will get my dividend before anyone else who owns common stock. Preferred stock is generally to keep control of the company in case someone wants to come in and try to take over, they have to own at least 51% of all the stock, and if the majority is preferred then usually the owner will not sell large chunks unless he is in a bad way.

So I have decided to announce publicly that I will be releasing 25,000,000 shares of common stock into the market, at an unbelievably low price, after all I want the people to know that this is going to be a deal for them and that they will make money in a short period of time. So, say the market values the stock at $5 a share, I want to undercut that a little bit so that people will be willing to buy. I will set my stock at $3 a share. Which means that there will be $75 million sold in my company. The market will still have it for $5 a share, which means the people will make 40% off of their initial purchase if they...

Other Papers Like Ways To Fund

Alternative Investments Essay

4991 words - 20 pages | Merger arbitrage | Fixed-Income Arbitrage | Long Short | Distressed securities | Quant Traders | Emerging Markets | | | Directional hedge fund strategies like global macro take positions in equity, bonds and currency to speculate on global macroeconomic events that will trigger and lead to huge gains in their position. Long short strategies add the possibility to short assets. Emerging Markets (EM) hedge funds belonged to this category of

Analizing Financial Statement Essay

2027 words - 9 pages another way to get the word around about fundraisers, donations and also people can give idea of how to raise more money for the cause. Anything can help and would help the organization. There are two ways that are nontraditional to approaches to fund development. One is a dinner event that people have to pay to get in even though it might be 5 to 10 dollars depending on what food they are going to to be serving during dinner. The other one is a bike

Hedge Funds

2971 words - 12 pages . Jones. ‘’He raised $60,000 and invested $40,000 of his money to pursue a strategy of investing in common stocks and hedging the positions with short sales’’. This fund existed all throughout the 1950s, 60s and the early 1970s. In the following decades the hedge fund industry kept on developing in all kinds of ways. Especially the size of the industry increased dramatically over the years. In 1990 the amount that was invested in hedge funds was

Fair Winds Ahead

2501 words - 11 pages ultimately failed. Buyout firms proposed a lifeline, but they fell short as the financial crisis deepened, leaving Neuberger's leaders to improvise an employee buyout during the most punishing financing environment in memory. Yet, four years later, Neuberger is freshly invigorated and focused on the essentials in the way disaster survivors tend to be. Its business is in sturdy condition, its fund performance is outpacing most peers and its strong

Utah Symphony and Utah Opera Merger

1734 words - 7 pages donations. She was also able to increase the Opera’s budget from $1.5 million to $5 million. After the September 11, 2001 tragedy both the opera and symphony suffered financially and were trying to figure out ways to replace lost revenues. A financial weakness of the opera prior to the merger was their lack of fund raising effort and capability. Leadership weakness was their inability to get all chairmen to agree on all decisions that were

Islamic Unit Trust

1031 words - 5 pages a form of collective investment constituted under a trust deed. It is an open-ended investment where the underlying value of the asset is always represent by the total number of unit be issued multiply with the unit price less the transaction management fee had be charged and any other associated cost. In each fund have a specific investment objective to be determine aims of the management and the limitations. For a small investor it is a

Dell's Working Capital

990 words - 4 pages , these firms were slowed from incorporating the new technology into their products due both to a lack of cash and an inventory of out-of-date products that could not be effectively sold along-side the faster, newer models. 2. How did Dell fund its 52% growth in 1996? Dell appears to have been able to fund its growth internally. To meet the increase in demand, Dell would have to increase its operating assets from their 1995 level

Investing Stocks and Bonds

1427 words - 6 pages Investing in Stocks and Bonds Stocks and Bonds are different in many ways. A stock is a portion or share of the ownership of a corporation. A share will give the owner of the stock the company’s profits or loses over time. The good thing about stocks is they can be sold at almost any time as long as there is someone willing to buy. A bond, on the other hand, is a fixed interest financial asset issued by governments, companies, banks, and

Source of Found

1583 words - 7 pages include equity (own saving and friends /relatives money, long-term loan, leasing, etc. For this purpose, mangers / owners should first consider to finance for working capital by short-term sources of capital, namely bank over-draft and short-term loan (Burns ,2011). 2.0 Alternatives of source of Fund There could be different ways to categorize forms of fund (E.g. by short-term or long term mentioned above), here, I would like to discuss

The Future of Social Security

908 words - 4 pages employees and you have to sell personal assets to cover any losses. As one can see the choice to bank on social security as a legitimate retirement fund is a horrible decision. It is personally and financially irresponsible for anyone to believe that they will be able to depend on social security. Individuals need to be more dependent on themselves to find ways to support them through retirement. By investing wisely at an early age, individuals

Case Study

2618 words - 11 pages Submitted by: Hanan Tariq, Mansoor Amin, Assad Hamid khan ID: F1F1MBAM0025-0022-0028 Section: MBA-A3 Course: Business Math Submitted To: PROF. Faizan Wajid SR# | Contents | Page# | 1 | Loan | 3 | 3 | Amortization | 4-5 | 4 | Amortization of Intangible Assets | 6-7 | 5 | Sinking Fund | 8-9 | 6 | Examples Problems | 9-12 | 7 | References | 13

Related Essays

Savings And Mutual Funds Essay

611 words - 3 pages Savings & Mutual Funds Group 4 How can a mutual fund earn from its securities investments ? 2 ways: (1) dividends and interest (2) a security can rise in value What is a mutual fund? A Mutual Fund is an investment company that pools the funds of many individual and institutional investors to form a massive asset base. 4 Basic Types of Mutual Funds  Stock Funds(also called equity),  Bond Funds,  Money Market Funds and  Balanced Funds

Medicare Trust Fund Essay

1661 words - 7 pages Medicare system. Because of this awareness, they are willing to make the necessary changes to keep the Medicare Trust Fund sound. As our population ages and more fraudsters find ways to manipulate the Medicare system to their advantage, it is necessary for everyone to stay aware of policy changes and keep a keen eye for providers that appear to be unscrupulous. Medicare is for the greater good of our society and it is the responsibility of all to

Chapter 11 Governmental Essay

4951 words - 20 pages -raising appeal be considered fund-raising costs, unless three criteria are satisfied: * Purpose. A key purpose of the combined activity is to fulfill a program, management, or general function in addition to fundraising and public education. * Audience. The audience for the materials or activities is selected principally on its need for the program or for its ability to advance program goals in ways other than by financial support

Re Transactions Assgnment Essay

867 words - 4 pages huge deal making the overall fund underperform its target while charging a promote. Without looking at every deal with respect, you can skew the results of the overall portfolio. 2. For both value-add and opportunistic fund structures, how do you think about: a) The total cost of that manager? Many different ways to charge fees in the funds exist so it is necessary set everything to an equivalent metric such as Gross Asset Value. Value-add and