what are the disadvantages of getting equity financing from friends/family?

Q: What is Pension Funds and insurance companies? What is Private Investors? What is Wholesale…

A: A retirement benefit is a payment that is paid to a retired individual.An investor is any individual…

Q: t is Institutional Investors? Briefly Explain.

A: There are many types of investors in the market and institutional investors are large investors.

Q: Why are mutual funds considered good investments for long-term investors?

A: Investment means engaging your funds to generate wealth or profit in future. There are many…

Q: For an investor, it better to earn dividend or capital gains?

A: capital gains are profits that occur when an investment is sold at a higher price than the original…

Q: What are the advantages of getting equity financing from friends and/or family members,  the…

A: Answer: Usually, equity finance is provided by the company in the form of selling company’s stock or…

Q: Explain the risks of holding debt and equity from the point of view of an investor.

A: Debt investments are generally fixed yielding instruments such as bonds, company deposits, etc.…

Q: Would your inclination be to invest in mutual funds or to do the research yourself and invest in…

A: mutual fund: mutual funds is a company that pools money from many investors and invest the money in…

Q: Between stocks and bonds, which do you prefer to invest your money? Why?

A: Stock and bonds are two different types of instruments of investment.

Q: What are some comparative advantages of investing in the following?a. Unit investment trusts.b.…

A: Comparative advantage Invest in unit investment trust Look unit investment trust is hardly like…

Q: What is the difference between outside view and inside view in investing?

A: Behavioral finance is a concept in which invetsment decisions are made by the investors based on the…

Q: If you were to invite investors to your business, who would they be and why? What are the possible…

A: In business there is need of money on continuous basis to grow and expand business so you have to…

Q: How do you put your plan for investing in equity securities into action?

A: Introduction: The term "equity inventment" refers to the investment made by investors in the stock…

Q: Why are the costs of selling equity so much larger than the costs of selling debt?

A: The Debt and Equity are part of capital structure of a company. Cost of equity is the minimum…

Q: How can an investor benefit from ane equity investment that does not pay dividends?

A: In layman’s words, financial management is the management of the finance or funds in an…

Q: What is the difference between investing and gambling?

A: Investing and gambling have long been treated as similar terms but there are major differences…

Q: Before you put your money down and purchase a stock, what should you know about it?

A: An investor must consider certain factors which are necessary to make decision whether to buy the…

Q: From an investors perspective what are the pros and cons of equity financing? Please discuss.

A: Financing the te requirement of capital by issuing equity shares in the market is called equity…

Q: Why would so many people invest in a company like AFCO? What could investors have done to prevent…

A: The majority of people invest in companies like AFCO in order to get faster and more profitable…

Q: Why Rich Dad (Robert Kiyosaki) suggests that debt can be beneficial and generate financial leverage?

A: Rich Dad Poor Dad is a 1997 book written by Robert Kiyosaki and Sharon Lechter. The book is known as…

Q: s to considering investment, if an investor is of a high income bracket, what kind of bond would…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: Financing for entrepreneurial start-ups includes which of the following?  investments by family and…

A: Entrepreneurial start-ups are a risky investment as compared to an established business. Thus, it is…

Q: What is the classification of Equity investments for which the investor does not have significant…

A: When a equity investment is made and if such investment does not result in significant influence,…

Q: What are the advantages in investing in an equity securities?

A: Equity securities refer to those securities which make the investors the owners of the company.…

Q: Can you lose money in a mutual fund?

A: A mutual fund is referred to as a company that collects money from investors and invests the money…

Q: Will you choose to invest in bonds if you are an investor? Why?

A: A bond is a long-term investment instrument that requires a corporation to return the amount of the…

Q: ate Equity   What are the benefits of less regulation for private equities

A: Private equities are important source of finance for the new and small business and even larger…

Q: What are the roles of venture capitalists and business angel in entreprenurial finance?

A: A venture capitalist (VC) is an investor who lends funding to new firms in return for stock.New…

Q: What value do mutual funds add for individual investors and how?

A: Mutual Fund is a trust that pools together the resources of investors to make a foray into…

Q: what ae the advantages of getting equity financing from friends and/or family members?

A: Equity financing refers having the ownership interest in the business. Equity owners share profits…

Q: What is meant by “going private”? What are someadvantages and disadvantages? What role doprivate…

A: Going private means when a particular group or a firm of private equity acquires the stake in the…

Q: QUESTION 1 One of your clients is new to investing and has limited resources. Which of the following…

A: The question is based on the concept of selection of investment, the process of selection depends on…

Q: How do banks assess the risk appetite of each customers in terms of choosing the right  investment

A: Investments of banks are in the form of loans they have provided. Before giving loan to any customer…

Q: If investing in the stock market today, how would your decisions be affected based on what you know…

A: Stock- It is a unit of ownership in a company's capital. It entitles the stockholder to an equal…

Q: What are the advantages and disadvantages of buying bonds mutual funds?

A: Bond Mutual Fund is a pool of funds of small investors, where the fund manager invest the money of…

Q: What are some benefits of owning stocks? How can you mitigate the risk?

A: Owning stocks brings with itself its own unique set of risks and benefits.

Q: Why invest in mutual funds?

A: A mutual fund is a competently organized investment fund that funds money from many investors to buy…

Q: y Treasury stock, what happens to your assets and equity when you sell it?

A: Treasury stock are own outstanding stock which company can buy or sell in the market.

Q: Why should an investor use debt?

A: Debt investments represent the loan which an investor lends to earn interest along with the…

Q: Having researched derivatives for investment portfolios, is a need for them as hedging vehicles in…

A: Derivatives are instruments that derive their values from the underlying assets and are used to…

Q: Making a choice would you rather invest in stocks or bonds? Why?

A: Whether to invest in stocks or bonds depend on the risk taking capability and investment time…

Q: How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’…

A: Securitization is a method in which assets are converted in securities by using financial tools.…

Q: Financing for entrepreneurial start-ups includes which of the following? investments by family and…

A: Providing capital to a person or enterprise is called financing.

Q: In order to achieve your savings goal for retirement, do you believe it is better to focus your…

A: In order to achieve my savings goal for retirement I will invest in a manner that will balance the…