The Capital Funding Description

Bridge/Swing Loan

Short term loan made in anticipation of longer term financing or equity Investment on which a letter of intent has been issued.

Debt Offering

A debt instrument offered for purchase by private investors. Normally with warrants for future stock purchases at fixed prices.

Divestiture

The outright sale of company assets, such as ownership sale to employees, sale of large blocks of stock or orderly liquidation.

Equity Participation

Offer of an ownership position to induce the loan or can be a note that has an option to convert from debt to equity.

Initial Public Offering

A Corporation's first offering of stock to the public. Firms that assist you through the detailed process of an IPO.

Joint Venture Partner

An individual, institution or company which provides capital, product or service (usually on a 50/50 basis) and shares in the costs and revenues.

Leveraged Buy Out (LBO)

Any public or private company buyout in which an owner is involved partially or totally.

Management Buy Out (MBO)

Any public or private company buyout in which long term, experienced, inside management is involved.

Market Maker Exchange (NASDAQ)

A broker dealer who stands ready to maintain firm bid and offer prices of publicly traded stock. "Specialist" on the exchange.

Market Maker Over The Counter (OTC)

A broker dealer who stands ready to maintain firm bid and offer prices of publicly traded stock. "Market Maker" in pink sheets.

Merger and Acquisition

The combination of two companies. If one company survives it is a merger, if both survive it is an acquisition.

Mezzanine Funding

Company's progress makes positioning for an Initial Public Offering viable. Venture funds are used to support the IPO.

Preferred Stock Offering

The offering for sale of non-voting, preferred dividend payment stock to investors. Control of the corporation is original owners.

Private Placement

The stock investment purchase by an "angel" or institution. No Securities and Exchange Commission registration is required.

Recapitalization

Exchange of corporate bonds for stock. Typically occurs in bankruptcy or turnaround, where preferred stock (equity) is exchanged for bonds (debt).

Reverse Merger Into Public Shell

Can produce immediate access to public funding; liquidity and security for private funding; and, exponentially increase market value.

Secondary Public Offering

A Corporation's second offering of stock to the public.

Turn Arounds

Investors who speculate that poorly performing companies are about to turn the corner and show profits.

Underwritings

Brokers who assume the risk of buying the IPO stock offering and then reselling those shares to the public at a profit.