Equity investors often feel obligated to remain fully invested, because equities have a much higher average rate of return, at least historically.
Equity investors often provide experience and guidance to young entrepreneurs that can help a business grow.
Besides,
equity investors often seek returns of 30 % or more.
Not exact matches
«Most
equity investors prefer either an executive summary or pitch deck for first contact, but will
often request a more detailed plan later in the due diligence process.
Making matters worse, it's not the
investors who usually suffer in a down round, it's the founders, who
often have to give up a much larger portion of
equity to secure that round and keep the lights on.
Equity financing, the capital source that most
often comes to mind first for many business owners, is a good option for those who have a compelling enough business to attract
investors.
Most venture - capital firms — Sequoia included — are used to the old
equity model in which
investors purchase private shares of a company,
often while mentoring the founders to help the company reach its full potential.
I have
often seen cases in which entrepreneurs are unable to repay relatives because they subsequently raise money from professional
investors who do not look kindly on business owners who try to repay one class of
equity investors before others.
The private
equity industry has been indignant in reaction, mostly because fees are
often disclosed during a deal and haggled over with fund
investors.
And for the Chinese private
equity groups, raising funds in dollars instead of yuan enables them to target overseas investments without getting entangled in Beijing's capital controls, while international
investors often wish to avoid taking local currency risk.
It demonstrates that a global
equity framework can provide diversification and higher long - term risk - adjusted returns for
investors from high growth countries who
often hold home - biased
equity portfolios that can have high concentration risk.
Angel
investors often invest in very early stage businesses that spark their interest before other
equity investors like venture capitalists would be interested.
Private Funds (which include hedge funds and private
equity funds)
often engage in speculative investment techniques and are only suitable for long - term, qualified
investors.
It's
often used, prosaic advice, but at a time when
investors are flocking to ex-U.S.
equity ETFs, knowing what's inside international multi-factor fare is important.
Most
often investing capital in young companies in exchange for a small (5 % — 15 %)
equity stake, incubators charge low to no up - front cost for utilizing the workspace and the organization's cultivated resources such as mentors and networks of
investors in the startup's industry.
Acquirers, especially private -
equity investors,
often implement the method as a cost - cutting strategy following a merger.
The market for risky loans
often used in buyouts has ballooned on
investor demand
Demand for risky loans that fund private - equity buyouts and other highly indebted companies has pushed the size of the market beyond $ 1 trillion for the first time.
It was only in the fall of 2013, that the federal securities laws in the US were amended under Title II of the Jobs Act to allow advertising when selling to accredited
investors (
often referred to as Title II
equity crowdfunding or Rule 506 (c)
equity crowdfunding).
Private
equity investors were
often willing to take noncontrolling stakes in companies, leaving significant stakes for owners, managers and workers.
-- To the posts above, there are quite a number of books and articles that recommend (
often with math / backtesting) that young
investors should focus on 100 %
equities, if not more.
For instance, the UK represents less than 3 % of the world
equity markets, but the proportion of UK
equities in a typical UK
investor's portfolio is
often 40 % or more.
Portfolio managers
often like to include an international
equity component to expose the
investor to economies other than the United States.
A rise in interest rates — in part related to tax cuts which will stimulate the economy and require the government to issue more debt — caused many
investors to revalue their stock holdings (
equities are
often valued in part based on their expected returns versus a risk - free Treasury).
As
investors scramble to find returns in this stretched market, some are turning to IPOs, private
equity, and other risky,
often speculative investments.
Raising
equity from angel
investors is a complicated and
often exhausting process.
Although it might be true that stocks almost always beat bonds over long periods of time, striking the right asset allocation balance may allow
investors to better manage the emotional response associated with heightened
equity market volatility that
often leads to poor investment outcomes.
They are based on accounting rules originally designed for debt
investors, not
equity investors, and are
often manipulated by companies to manage earnings.
-- To the posts above, there are quite a number of books and articles that recommend (
often with math / backtesting) that young
investors should focus on 100 %
equities, if not more.
How
often in the last few years have
investors said they're staying out of the
equity markets because of the volatility we've experienced recently?
For many institutional
investors, one of the most convenient and
often inexpensive ways to gain exposure to the Canadian
equity market is via S&P / TSX 60 futures contracts.
Market Participants Unlike the
equity market - where
investors often only trade with institutional
investors (such as mutual funds) or other individual
investors - there are additional participants that trade on the forex market for entirely different reasons than those on the
equity market.
Indeed, one potential problem with SRI funds is they're
often slow to attract
investors and are vulnerable to closure: Pax World used to offer a North American
equity ETF with a socially responsible screen, but that fund was shuttered in March.
Buying bonds is
often an ill - informed minefield — in fact, many
investors don't even get the opportunity, they're essentially confined to investing in
equities...
Experienced
investors often begin their stock research by looking at indicators such as a company's debt - to -
equity ratio.
Value
investors often look at the debt /
equity (D / E) ratio when analyzing a company.
Investors who venture beyond the U.S. borders should be aware that an
equity portfolio made up of 50 % in international stocks will
often have returns that are quite different from those of the U.S. markets, particularly the S&P 500.
Private
equity funds are usually not available to retail
investors as the minimum investment is
often $ 500,000 or higher, however retail
investors may have exposure to private
equity funds through their superannuation fund.
But
equity investors don't necessarily have to care so much about inflation or currency depreciation (two sides of the same coin), since they
often tend to be compensated accordingly with higher / lower underlying
equity returns.
If bond values drop, balanced funds and institutional
investors are
often forced to sell
equity positions and buy bonds to re-balance their portfolios.
Just as the impact of dividends on total return on investment, or ROI, is
often overlooked by
investors, so too is the fact that dividends provide a helpful point of analysis in
equity evaluation and stock selection.
The outcome is so binary, in hindsight an
equity valuation will be far too low, or high... I
often notice that the market /
investors can ignore debt for long periods of time — i.e. they value a company almost exactly like its debt free peer.
A private
equity (PE) fund is a collective investment model where money from separate
investors is pooled together into a single fund and then used to make investments, most
often in various illiquid
equity and debt assets.
Gold and bonds
often have a very low or negative correlation with
equities, because
investors flock to these markets during times of crisis.
This is a very important point, and one that is
often missed by
investors: If you hold bonds to diversify
equity risk, interest rate risk is key.
Domestic
equity investors have long understood the importance of dividends, but their value when investing globally is
often overlooked.
In the early stages of a startup, founders
often issue
equity to friends, family members and other
investors to acquire initial working capital and to engage key employees at a low - cost basis.
Often negotiated at a time when the investment vehicle has no outstanding debt, sometimes the buy - sell provision contemplates only a disengagement of the parties»
equity interests, but fails to cover off adequately other «investments» that may be made by
investors on behalf of the business.
Investors can
often end up reaping 50 % more of what they had invested in when they choose the Canara Robeco
Equity Tax Saver.
Similar to those
equity deals,
often the founders and a handful of
investors will own the majority of the asset,» Bloomberg quotes BlockTower's Paul.
I personally believe that the two pieces — cash flow and
equity build - up — are integral for a real estate
investor, but are quite
often mutually exclusive.