How do you calculate capital gain on stock?

– The net sales price less your investment (adjusted tax basis) on the stock.

Are capital gains short or long-term?

– Capital gains for tax purposes are calculated on assets held for over a year. By specific definition a capital gain is the net increase on any security.

What is “Capital Under Management?”

– Capital under management is the amount of capital available to a venture capital management firm for venture investments.

How is the civilian “Unemployment Rate” calculated?

– Divide the number of people unemployed by the total size of the labor force expressed as a percentage.

Who is considered unemployed?

– Jobless people who are looking for jobs and available for work.

How is the “Labor Force” defined?

– The labor force is defined as people who are either employed or unemployed.

What is a “Closing?”

– Closing is the final event to complete a financial transaction, such as buying a home or committing to a venture capital investment at which time all the legal documents are signed and the funds are transferred.

What is a “Convertible?”

– A convertible is a category of corporate securities, usually bonds or preferred stock, which can be traded for a predefined number of common shares of stock at a predetermined price.

Who are “Convertibles” most appropriate for?

– For investors (1) seeking higher income than dividends paid from common stock and (2) greater appreciation potential than bonds.

What is a “Convertible Security” usually designed for?

– To act as a sweetener that enhances the marketability of common or preferred stock.

What is “Corporate Venture Capital?”

– A subsidiary of a large corporation that makes venture capital investments.

What is “Corporate Venturing?”

– Corporate Venturing is a practice of a large company, taking a minority equity position in a smaller company in a related field.

What Is “Deal Flow?”

– The rate of time rate at which offers are presented to funding institutions.

What Is “Debt Financing?”

– Debt financing occurs when a company raises working capital or capital expenditure funds by selling bonds or notes to institutional investors and/or individuals.

What Is a “Drive by Deal?”

– A deal in which a venture capitalist invests in a startup company with the goal of exiting the investment quickly and provides no assistance other than financial to the startup company.

What Is “Due Diligence?”

– The process investors go through evaluating the details of a potential investment to determine if the business is worth investing time and money in.

What is “Equity Financing?”

– When a company issues shares of common or preferred stock to raise money.

When is “Equity Financing” commonly done?

– When the company’s stock per share prices are sufficiently high so that the most money can be raised for the smallest number of shares sold.

What is an “Equity Offering?”

– The process of raising funds through selling or trading a service for common or preferred stock.

What is an “Exit?”

– The sale or exchange of company ownership for cash, debt, or other forms of company equity.

Dr. Brent Lundell owns http://www.GainStreamGroup.com, a venture capital sourcing and consulting company, and is a partner in The Guinn Consultancy Group, Inc. The Guinn Consultancy Group provides a wide array of business services, including seminars, webinars, and venture capital sourcing services. See the group website at www.theguinnconsultancygroup.com or contact them for additional information at 800-335-9269.

Dr. Brent Lundell owns http://www.GainStreamGroup.com, a venture capital sourcing and consulting company, and is a partner in The Guinn Consultancy Group, Inc. The Guinn Consultancy Group provides a wide array of business services, including seminars, webinars, and venture capital sourcing services. See the group website at www.theguinnconsultancygroup.com or contact them for additional information at 800-335-9269.

Author Bio: Dr. Brent Lundell owns http://www.GainStreamGroup.com, a venture capital sourcing and consulting company, and is a partner in The Guinn Consultancy Group, Inc. The Guinn Consultancy Group provides a wide array of business services, including seminars, webinars, and venture capital sourcing services. See the group website at www.theguinnconsultancygroup.com or contact them for additional information at 800-335-9269.

Category: Business
Keywords: Finance,Business Funding,Venture Capital