by Lea Strickland | Jul 31, 2010 | Glossary
The duty of a firm’s directors and officers to act prudently in evaluating associated risks in all transactions. Also, the duty of the investor to gather necessary information on actual or potential risks involved in an investment.
by Lea Strickland | Jul 31, 2010 | Glossary
Convertible debt is a loan agreement or note at the time the investment in the business is made. However, the loan balance (principal plus interest) may be converted into ownership at a later date. Conversion may be triggered automatically when a new round of...
by Lea Strickland | Jul 31, 2010 | Glossary
Person who serves as a trusted agent or intermediary in commercial negotiations or transactions. Brokers are usually licensed professionals in fields where specialized knowledge is required, such as finance, insurance, and real estate.
by Lea Strickland | Jul 31, 2010 | Glossary
A state law in the United States that regulates the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws vary among states, they all require the registration of all securities offerings and sales, as well as of...
by Lea Strickland | Jul 31, 2010 | Glossary
A group of accredited investors who provide capital to one or more start-up companies.
