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A right granted to existing shareholders to maintain their percentage ownership stake in a company by purchasing new shares in proportion to their existing holdings.
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A type of equity that typically has a fixed dividend and takes priority over common stock in the event of a company's liquidation.
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The valuation of a company prior to the closing of an investment round. It is the value of a company before new capital is added.
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A type of investment where investors purchase stake in a company that is not publicly traded on a stock exchange; usually with the goal of improving the company's financial performance, and ultimately increasing the value of their stake.
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The sale of securities to pre-selected investors and institutions rather than publicly on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.
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The share of profits received by the general partner of a private equity or venture capital fund, in addition to the management fee.
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A market for the buying and selling of publicly traded securities, such as stocks and bonds.
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The original sum of money borrowed in a loan or put into an investment. In the context of investing, principal is the original sum committed to the purchase of assets (independent of any earnings or interest).
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The overall process, whether explicit or inferred, of setting the proper price of an asset, security, commodity, or currency.
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Selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution.
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The frequency represents how often investors should receive forms of principal or interest repayments on their investments.
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A form of financing in which companies or real estate projects borrow money from private investors, rather than from traditional sources such as banks or public markets.
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A financial asset that is not traded on public markets and is therefore not directly affected by market volatility. these assets, which are also known as alternative investments, include commercial real estate, fine art, private credit, venture capital, private equity, consumer packaged goods, spirits and more.
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The sale of securities to pre-selected investors and institutions rather than publicly on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.
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An arrangement between a public company and private investors to purchase a large number of shares at a discount.
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A company that a specific venture capital firm, buyout firm, or private equity firm has invested in.
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On equal footing. Used in finance to describe situations where two or more assets, securities, creditors, or obligations are equally managed without any display of preference.
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The claim on profits given to preferred investors in a project.
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The right of an investor to participate in subsequent funding rounds to maintain their ownership percentage in a company.
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The value of a company after outside financing and/or capital injections are added to its balance sheet.
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A type of protection given to preferred shareholders, entitling them to receive dividends or liquidation proceeds.
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A fund established by an employer to facilitate and organize the investment of employees’ retirement funds.
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When a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm’s own money, as opposed to depositors’ money, so as to make a profit for itself.
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A fixed-income security that guarantees a minimum return equal to the investor’s initial investment (the principal amount), regardless of the performance of the underlying asset.