If you’re in the market to invest in stocks you might be weighing the options of buying stock with a stockbroker, through a brokerage account, or purchasing directly from a company itself.
Knowing how to buy stock directly from a company is key if you’re looking to cut out the middleman and the high fees associated with a broker or brokerage account. This can be done through Direct Stock Purchase Plans, also known as DSPPs, and can be a good option if your primary goal is to obtain a single company’s stock.
Blank check companies, or special purpose acquisition companies (SPACs), have been on the rise over the past 15 months as an alternative to taking a company public. So what are they and what’s all the fuss about?
What Is a Blank Check Company?
A blank check company is a public entity listed on the stock exchange that doesn’t have any purpose or business plan. The purpose of a blank check company is solely to acquire or merge with a private company, taking the private company public while bypassing the traditional IPO process.
“Getting in on the ground floor” is the dream of just about every investor who has heard of the fortunes amassed by early investors in Apple and Amazon. Because of that, the average retail investor shows a keen interest in Initial Public Offerings (IPOs).
However, one step ahead of them are those who invest in pre-IPOs. Often, companies issuing pre-IPO stock never make it to the IPO stage, and those investors who bought pre-IPO shares of those companies don’t realize the return they had hoped for.
The words “Hostile Takeover” in the headline of a business publication are sure to generate a substantial amount of reader interest. Many storylines, fiction and non-fiction, paint a hostile takeover as the death knell for a company. While it makes for interesting reading, it’s important to know that a “tender offer” is at the heart of every takeover, friendly or not.
This article will look at what a tender offer is, how it works, its advantages and disadvantages, regulations associated with tender offers, and more. Whether you intend to buy or sell shares related to a takeover, this article will serve as a foundation for deciding whether or not to participate.
World Tree is hosting a Regulation D offering on EquityNet now through November 30. Accredited investors can create a profile and explore investments in World Tree and other firms making an impact in today’s world on EquityNet.com. Invest in World Tree here!
Climate change, deforestation and degradation are issues that are affecting us all, and will only continue to worsen if a change is not made. World Tree is on a mission to connect investors and farmers to create a new narrative for the planet we all share.
In the last twelve months, investors on EquityNet reviewed nearly 4 million company profiles while surveying the landscape for their next investment. We decided to use this data to analyze the best sectors to invest in based on those that intrigue investors the most.
When using our platform, businesses have 34 options to categorize their sector, ranging from Aerospace, Chemicals, and Defense to Pharmaceuticals, Media, Real Estate, and more. Below, you will see the 10+ industries piquing the most interest among investors on EquityNet:
In typical Pareto’s Principle practice, the top two sectors received as much investor interest as the next eight most intriguing combined.
Qualified Small Business Stock (QSBS) Section 1202 Exclusion
If you’ve ever sat down on a Sunday afternoon to read the tax code, you’re probably familiar with section 1202. If you haven’t, you’ll want to keep reading for a brief overview of how this mere footnote can leave a big footprint on the tax burdens of small business investors.
Section 1202 is the partial exclusion for gains from qualified small business stock.
What is Qualified Small Business Stock?
Qualified Small Business Stock (QSBS), sometimes referred to as “section 1202 stock,” is an internal revenue code (IRC) exclusion that can eliminate capital gains tax for long-term investors and other shareholders of qualified small businesses.
From a company’s perspective, there are two methods for raising capital: debt and equity. Debt is usually less expensive than equity because the debtholder’s returns are fixed and finite. You can also deduct interest expenses from your tax burden, which is an advantage of using debt financing.
But there are many reasons a company would want to raise equity capital and therefore must understand their cost of equity. Investors will also likely conduct a similar analysis for different reasons, but it’s good to align cost of equity expectations.
Today’s entrepreneurial ecosystem is experimental. It’s experimental because 500,000 companies are started every year with a hypothesis for solving a problem and, in that same year, an equal number of businesses fail.
From a macro perspective, these innovative companies test the market and either have groundbreaking success or enlightening failure. Those that fail send a powerful signal to the market that helps evolve our collective thinking about business and investing. Another powerful signal is the valuation multiple paid to invest in these companies — how is the market pricing innovation?