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Complete 2 page APA formatted essay: Participatory Effort in Developments of Raising Capital.Another feature is that such investments require good in-depth knowledge of the prospects of the business a

Complete 2 page APA formatted essay: Participatory Effort in Developments of Raising Capital.

Another feature is that such investments require good in-depth knowledge of the prospects of the business as well as of the acumen of its protagonists and the participating investors. Often funds are pooled by a major investor who offers partnerships and all partners agree to share the sentiments on the investment pattern and timings. In case a partner withdraws prematurely then he is likely to be denied opportunity in future as being unreliable since the continued availability of funds is a prime factor in such investments. The main feature of such companies is that they are usually a prospect for a buy-out or takeover that enhances their value substantially.

&nbsp.Private placements are more often more paying in emerging markets as securities in these places are likely to be undervalued and provide above-average returns. However, it is prudent to take a hedge once the company has become public as this will cover any likely loss of value that sometimes happens when market sentiments are affected by internal or external events.

&nbsp.This is the term for investments into property or natural resource companies. Such companies offer a different value to their investors. Unlike equity or debt portfolios, where the element of risk is high or low respectively, these investments are always on the extreme of both. They can fetch high returns when the market is on a growth trajectory as their both their asset and return values precipitate quickly due to the restricted availability of their assets. Similarly, in cases where there is a general economic decline, not really related to their own assets, the sentiments force down values and bring about negative returns very quickly.

&nbsp.These investments are also usually made by large institutional investors as the risks are enormous and not meant for the ordinary investor who panics at the drop of a hat.

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