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A contractual provision stating that the seller of a business is to obtain additional compensation in the future if the business achieves certain financial goals, which are usually stated as a percentage of gross sales or earnings.
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Ownership interest in a company, typically represented by the stock.
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A method of raising capital by soliciting small investments from a large number of people, often through online platforms, in exchange for equity in the company.
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The process of raising capital by selling ownership stakes in a company or investment.
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A plan for how and when an investor will sell their stake in a company or investment. An exit strategy can involve selling the investment or business to another party, liquidating assets, or distributing ownership to shareholders.
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A measure of the decrease in the market value of an asset over time from influential economic factors. This form of depreciation usually pertains to real estate, which can lose value for several reasons The decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.
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A piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities. These indicators also help to judge the overall health of an economy. Statistics or data that provide insights into the overall health and performance of an economy
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An equity incentive where the lender provides credit at a lower interest rate and, in exchange, gets an equity position in the borrower's company. An additional return on an investment in the form of equity, typically used to sweeten a debt financing deal.
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An exchange of future cash flows between two parties that allows each party to diversify its income for a specified period of time while still holding its original assets. A financial contract where two parties agree to exchange future cash flows based on the performance of an underlying equity instrument.
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A set of standards for a company’s behavior used by socially conscious investors to screen potential investments. Investing in companies that demonstrate positive environmental, social, and governance practices.
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The possibility that an unforeseen event will negatively affect a company, industry, or security causing a loss to investors or other stakeholders. The risk associated with unexpected events, such as natural disasters, political changes, or regulatory decisions, that can impact investments.
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Investment returns that exceed a benchmark or index with similar risk. Excess returns will depend on a designated investment return comparison for analysis. The riskless rate and benchmarks with similar levels of risk to the investment being analyzed are commonly used in calculating excess return.
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A rapid increase in value or magnitude over time, following an exponential function.
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A measure of a company’s operating performance.
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A type of venture fund with an unspecified life span that continuously reinvests profits in new investments.
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A legal concept describing a financial instrument whereby an asset or escrow money is held by a third party on behalf of two other parties.
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A financial asset donation made to non-profit group or institution in the form of investment funds or other property that has a stated purpose at the bequest of the donor.
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The hypothesis that people value a good or service more once their property right to it has been established.