Sentences with phrase «investors absorbing the losses»

A failed business may simply cease operations; with the owners and investors absorbing the losses (if any); a troubled business on the brink of going under may seek to merge with another company that has the resources to keep it afloat and out of bankruptcy; or a dying business may be bought up by another, stronger company, seeking to breathe new life into it or simply to acquire its assets.

Not exact matches

An investment is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment.

It's foreign investors and central banks who must absorb the loss in their dollar holdings as valued in their own domestic currencies.

If there are losses on any of the loans, the losses are absorbed and the investor still has a very high likelihood of getting their 10 % return.

To accomplish this, the Geithner plan creates a speculative incentive for private investors, by effectively offering them a «put option,» whereby taxpayers would absorb all losses in excess of 3 - 7 % of the purchase amount.

Investors are protected from some downside risk, however there is a risk of substantial loss of principal because you agree to absorb all losses in excess of the partial cap.

Not only does that approach cast the cybersecurity risk in stark relief, but it also exposes the fact that bitcoin investors have little choice but to do business with undercapitalized exchanges that may not have the capital buffer to absorb these losses the way a traditional and regulated bank or exchange would.