Not exact matches
Turning
illiquid private - company stock into cash by selling shares to the public
required engaging a top
investment bank, which typically wouldn't take a company public until it had had five profitable quarters of increasing revenue.
When considering alternative
investments, you should consider the fact that some products may utilize leverage and other speculative
investment practices that may increase the risk of
investment loss and be
illiquid, are not
required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees including incentive fees, and in many cases have underlying
investments that are not transparent and are known only to the
investment manager.
These portfolio statements are also
required to disclose
illiquid securities in the portfolio,
investment made in rated and unrated debt securities, non-performing assets (NPAs), etc..
Liquidity risk exists when particular
investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such
illiquid securities at an advantageous time or price, or possibly
requiring the Fund to dispose of other
investments at unfavorable times or prices in order to satisfy its obligations.
Hedge funds may not be suitable for all investors and often engage in speculative
investment practices which increase
investment risk; are highly
illiquid; are not
required to provide periodic prices or valuation; may not be subject to the same regulatory requirements as mutual funds; and often employ complex tax structures.
Risk Disclosure: Alternative
investment products, including real estate
investments, notes & debentures, hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative
investment practices that may increase the risk of
investment loss, can be highly
illiquid, are not
required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying
investments are not transparent and are known only to the
investment manager.