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Wiki Wiki Summary
Investment management Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds, or REITs.
Cascade Investment Cascade Investment, L.L.C. is an American holding company and private investment firm headquartered in Kirkland, Washington, United States. It is controlled by Bill Gates, and managed by Michael Larson.
Investment fund An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to:\n\nhire professional investment managers, who may offer better returns and more adequate risk management;\nbenefit from economies of scale, i.e., lower transaction costs;\nincrease the asset diversification to reduce some unsystematic risk.It remains unclear whether professional active investment managers can reliably enhance risk adjusted returns by an amount that exceeds fees and expenses of investment management.
Finance Finance is the study and discipline of money, currency and capital assets. It is related with, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services.
Investment (macroeconomics) In macroeconomics, investment "consists of the additions to the nation's capital stock of buildings, equipment, software, and inventories during a year" or, alternatively, investment spending — "spending on productive physical capital such as machinery and construction of buildings, and on changes to inventories — as part of total spending" on goods and services per year.The types of investment include residential investment in housing that will provide a flow of housing services over an extended time, non-residential fixed investment in things such as new machinery or factories, human capital investment in workforce education, and inventory investment (the accumulation, intentional or unintentional, of goods inventories)\nIn measures of national income and output, "gross investment" (represented by the variable I ) is a component of gross domestic product (GDP), given in the formula GDP = C + I + G + NX, where C is consumption, G is government spending, and NX is net exports, given by the difference between the exports and imports, X − M. Thus investment is everything that remains of total expenditure after consumption, government spending, and net exports are subtracted (i.e. I = GDP − C − G − NX ).
Corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and recognized as such in law for certain purposes.: 10  Early incorporated entities were established by charter (i.e. by an ad hoc act granted by a monarch or passed by a parliament or legislature).
Municipal corporation A municipal corporation is the legal term for a local governing body, including (but not necessarily limited to) cities, counties, towns, townships, charter townships, villages, and boroughs. The term can also be used to describe municipally owned corporations.
C corporation An S corporation, for United States federal income tax, is a closely held corporation (or, in some cases, a limited liability company (LLC) or a partnership) that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.
Security (finance) A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction.
Equity-linked note An equity-linked note (ELN) is a debt instrument, usually a bond, that differs from a standard fixed-income security in that the final payout is based on the return of the underlying equity, which can be a single stock, basket of stocks, or an equity index. Equity-linked notes are a type of structured products.
List of municipal corporations in Tamil Nadu City Municipal Corporations of Tamil Nadu are the local governing bodies of the cities in Tamil Nadu. There are 21 municipal corporations in the state.
List of City Corporations of Bangladesh There are 12 city corporations in Bangladesh. Two of them are present in the capital Dhaka.
Office of the Registrar of Indigenous Corporations The Office of the Registrar of Indigenous Corporations (ORIC) assists the Registrar of Indigenous Corporations in administering the Corporations (Aboriginal and Torres Strait Islander) Act 2006 ("CATSI Act") and in supporting and regulating corporations for Indigenous people throughout Australia. The CATSI Act is similar to the Corporations Act 2001.The Registrar of Indigenous Corporations, formerly the Registrar of Aboriginal Corporations (1977–2007) and Registrar of Aboriginal and Torres Strait Islander Corporations (2007 – 1 May 2008), is an Australian Government statutory office appointed by the Minister for Indigenous Australians under the CATSI Act.
The Anschutz Corporation The Anschutz Corporation is an American private holding company headquartered in Denver, Colorado, United States. The company was started in 1958 by Fred Anschutz, a wildcatter, who developed and operated oil wells.
Ariel Investments Ariel Investments is an investment company located in Chicago, Illinois. It specializes in small and mid-capitalized stocks based in the United States.
Angel investor An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital for a business or businesses start-up, usually in exchange for convertible debt or ownership equity. Angel investors usually give support to start-ups at the initial moments (where risks of the start-ups failing are relatively high) and when most investors are not prepared to back them.
Risk management Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.\nRisks can come from various sources including uncertainty in international markets, threats from project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause.
Portfolio company A portfolio company is a company or entity in which a venture capital firm, a startup studio, or a holding company invests. All companies currently backed by a private equity firm can be spoken of as the firm's portfolio.A company may create a portfolio to showcase the capabilities and strengths of the business's services.
Company A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals.
Private-equity fund A private-equity fund is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) securities according to one of the investment strategies associated with private equity.\nPrivate equity funds are typically limited partnerships with a fixed term of 10 years (often with annual extensions).
Competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Portfolio manager A portfolio manager (PM) is a professional responsible for making investment decisions and carrying out investment activities on behalf of vested individuals or institutions. Clients invest their money into the PM's investment policy for future growth, such as a retirement fund, endowment fund, or education fund.
Risk–benefit ratio A risk–benefit ratio (or benefit-risk ratio) is the ratio of the risk of an action to its potential benefits. Risk–benefit analysis (or benefit-risk analysis) is analysis that seeks to quantify the risk and benefits and hence their ratio.
Risk society Risk society is the manner in which modern society organizes in response to risk. The term is closely associated with several key writers on modernity, in particular Ulrich Beck and Anthony Giddens.
Regulation A In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. Regulation A (or Reg A) contains rules providing exemptions from the registration requirements, allowing some companies to use equity crowdfunding to offer and sell their securities without having to register the securities with the SEC. Regulation A offerings are intended to make access to capital possible for small and medium-sized companies that could not otherwise bear the costs of a normal SEC registration and to allow nonaccredited investors to participate in the offering.
Regulation (European Union) A regulation is a legal act of the European Union that becomes immediately enforceable as law in all member states simultaneously. Regulations can be distinguished from directives which, at least in principle, need to be transposed into national law.
Regulation of therapeutic goods The regulation of therapeutic goods, defined as drugs and therapeutic devices, varies by jurisdiction. In some countries, such as the United States, they are regulated at the national level by a single agency.
Radio regulation Radio regulation refers to the regulation and licensing of radio in international law, by individual governments, and by municipalities.\n\n\n== International regulation ==\nThe International Telecommunication Union (ITU) is a specialized agency of the United Nations (UN) that is responsible for issues that concern information and communication technologies.
Technology Technology is the result of accumulated knowledge and application of skills, methods, and processes used in industrial production and scientific research. Technology is embedded in the operation of all machines, with or without detailed knowledge of their function, for the intended purpose of an organization.
Financial technology Financial technology (abbreviated fintech or FinTech) is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.
Information technology consulting In management, information technology consulting (also called IT consulting, computer consultancy, business and technology services, computing consultancy, technology consulting, and IT advisory) is a field of activity which focuses on advising organizations on how best to use information technology (IT) in achieving their business objectives.\nOnce a business owner defines the needs to take a business to the next level, a decision maker will define a scope, cost and a time frame of the project.
Perfect competition In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price.
Monopolistic competition Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
Competition (biology) Competition is an interaction between organisms or species in which both require a resource that is in limited supply (such as food, water, or territory). Competition lowers the fitness of both organisms involved, since the presence of one of the organisms always reduces the amount of the resource available to the other.In the study of community ecology, competition within and between members of a species is an important biological interaction.
Cournot competition Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine Augustin Cournot (1801–1877) who was inspired by observing competition in a spring water duopoly.
Risk Factors
RAND CAPITAL CORP Item 1A Risk Factors The Corporations Portfolio Investments are Illiquid Most of the investments of the Corporation are or will be either equity securities acquired directly from small companies or below investment grade subordinated debt securities
The Corporation’s portfolio of equity securities is, and will usually be, subject to restrictions on resale or otherwise have no established trading market
The illiquidity of most of the Corporation’s portfolio may adversely affect the ability of the Corporation to dispose of such securities at times when it may be advantageous for the Corporation to liquidate such investments
Investing in Private Companies involves a High Degree of Risk The Corporation typically invests a substantial portion of its assets in small and medium sized private companies
These private businesses may be thinly capitalized, unproven companies with risky technologies and may lack management depth and have not attained profitability
Because of the speculative nature and the lack of a public market for these investments, there is significantly greater risk of loss than is the case with traditional investment securities
The Corporation expects that some of its venture capital investments will be a complete loss or will be unprofitable and that some will appear to be likely to become successful but never realize their potential
The Corporation has been risk seeking rather than risk averse in its approach to venture capital and other investments
Neither the Corporation’s investments nor an investment in the Corporation is intended to constitute a balanced investment program
Even if the Corporation’s portfolio companies are able to develop commercially viable products, the market for new products and services is highly competitive and rapidly changing
Commercial success is difficult to predict and the marketing efforts of the portfolio companies may not be successful
4 _________________________________________________________________ [52]Table of Contents The Corporation is Subject to Risks Created by the Valuation of its Portfolio Investments There is typically no public market for equity securities of the small privately held companies in which the Corporation invests
As a result, the valuations of the equity securities in the Corporation’s portfolio are stated at fair value as determined by the good faith estimate of the Corporation’s Board of Directors in accordance with the established SBA valuation policy
In the absence of a readily ascertainable market value, the estimated value of the Corporation’s portfolio of securities may differ significantly, favorably or unfavorably, from the values that would be placed on the portfolio if a ready market for the equity securities existed
Any changes in estimated net asset value are recorded in the statement of operations as “Net (increase) decrease in unrealized depreciation
” Investing in the Corporation’s Shares May be Inappropriate for the Investor’s Risk Tolerance The Corporation’s investments, in accordance with its investment objective and principal strategies, result in a greater than average amount of risk and volatility and may well result in loss of principal
Its investments in portfolio companies are highly speculative and aggressive and, therefore, an investment in its shares may not be suitable for investors for whom such risk is inappropriate
The Corporation is Subject to Risks Created by its Regulated Environment The Corporation is regulated by the SBA and the SEC Changes in the laws or regulations that govern SBICs and BDCs could significantly affect the Corporation’s business
Regulations and laws may be changed periodically, and the interpretations of the relevant regulations and laws are also subject to change
Any change in the regulations and laws governing the Corporations business could have a material impact on its financial condition or its results of operations
The Corporation is Subject to Risks Created by Borrowing Funds from the SBA The Corporation’s Leverageable Capital may include large amounts of debt securities issued through the SBA, and all of the debentures will have fixed interest rates
Until and unless the Corporation is able to invest substantially all of the proceeds from debentures at annualized interest or other rates of return that substantially exceed annualized interest rates that Rand SBIC must pay the SBA, the Corporation’s operating results may be adversely affected which may, in turn, depress the market price of the Corporation’s common stock
The Economic Environment May Change The value of the Corporation’s common stock may decline and may be affected by numerous market conditions, which could result in the loss of some or the entire amount invested in its shares
The securities markets frequently experience extreme price and volume fluctuations which affect market prices for securities of companies generally, and technology and very small capitalization companies in particular
General economic conditions, and general conditions in the Internet and information technology, life sciences, material sciences and other high technology industries, will also affect the stock price
The Corporation is Dependent Upon Key Management Personnel for Future Success The Corporation is dependent for the selection, structuring, closing and monitoring of its investments on the diligence and skill of its two senior officers, Allen F Grum and Daniel P Penberthy
The future success of the Corporation depends to a significant extent on the continued service and coordination of its senior management team
The departure of either of its executive officers could materially adversely affect its ability to implement its business strategy
The Corporation does not maintain key man life insurance on any of its officers or employees
5 _________________________________________________________________ [53]Table of Contents The Corporation Operates in a Competitive Market for Investment Opportunities The Corporation faces competition in its investing activities from many entities including other SBIC’s, private venture capital funds, investment affiliates of large companies, wealthy individuals and other domestic or foreign investors
The competition is not limited to entities that operate in the same geographical area as the Corporation
As a regulated BDC, the Corporation is required to disclose quarterly and annually the name and business description of portfolio companies and the value of its portfolio securities
Most of its competitors are not subject to this disclosure requirement
The Corporation’s obligation to disclose this information could hinder its ability to invest in certain portfolio companies
Additionally, other regulations, current and future, may make the Corporation less attractive as a potential investor to a given portfolio company than a private venture capital fund
Fluctuations of Quarterly Results The Corporation’s quarterly operating results could fluctuate as a result of a number of factors
These factors include, among others, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which portfolio companies encounter competition in their markets and general economic conditions
As a result of these factors, results for any one quarter should not be relied upon as being indicative of performance in future quarters