Investor
Investor questions and answers
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Q: Investor???????
My brother is planning to start a clothes line. I want to invest in it so he can get the copy right and all that. Now lets say that he makes it big what do I get for investing in the company?
A: Another possibility is your brother could form an S corp and give you a stake of shares of the business for an investment. I sold 2 20% stakes of my company and was able to raise around $20,000 to get started, while myself keeping the majority of shares. At the end of the year, if the company profited $100,000, shareholder A gets $20,000, shareholder B gets $20,000, and I get $60,000. You could negotiate the stake based on specifics to your business venture.
Out of curiosity, are you going to have the clothes made overseas? If so make sure you look into apparel quotas imposed by the US govt.
Q: What type of investor is best for this type of start up business?
I am interested starting a online artist promotion website. I need a estimated $80,000 for advertising & development costs. I have a high potential for profit estimated $7,400 first year, $29,000 second year. I have been told to go through private investors & angel investors. My business plan is already wrote too. Which type of investor do you think would be best for me?
A: I will review your exec summary on the 23rd, free.
I suggest you need no investors but a good IT team who can work
on spec if they believe.
Q: How can an investor sell stock after purchasing a put option when the value of the stock dropped?
If an investor buys a put option for the right to sell shares at $50 a share, and the market price of the stock drops to $40 per share, how is it possible the investor is able to exercise their right to sell the shares at $50 per share? Who would be interested in purchasing stock at $50 per share if they can purchase it for $40 per share?
A: You are correct that no one would want to pay $50 per share for a stock that they could buy for $40 per share on the open market, but when someone sells a put option they understand and accept that (1) that may happen and (2) the decision is up to the holder of the option.
You should also understand that it is quite likely that the person who wrote the put option did so as part of a spread. For a fairly simple example of a spread trade I did earlier see
http://messages.yahoo.com/Business_%26_Finance/Investments/threadview?bn=4686677%23optiontradestraderecommendations&tid=3274&mid=3274
In that example I bought AMGN stock for $62.50 per share when it was trading for less on the open market, but I still ended up with a small profit.
Q: What a sensible investor shall do under ptresent FRAUD STOCK / MUTUAL FUND / Share Market condition ?
Many frauds had taken money from public thtrough SHARE / MUTUAL FUND MARKET in a fake name of a COMPANY.
These companies did not do any business and does not exist.
What the right investor has from these FRAUD COMPANIES ?
What an investor shall do so that THEY ARE PROTECTED in future FROM THESE or any other FRAUDs?
A: Just do not invest and stay away from fradulent companies!
Q: How do I find an investor for my business?
I am just starting out with this idea and can't get a business loan because I don't have substancial credit. I want someone to invest in a furniture/ retail outlet in Indiana but I don't know who to ask or where to go. Where do you go? Do you know someone who would invest? I am offering a 25% of the profit for the investor.
A: go to http://www.breadstreet.com there you can post a funding request for a 49.95 monthly membership fee that has a 15 day money back guarantee if you are not happy with the service.But the way it works is you post your funding request and you will have investors contact you as well as you being able to contact 10 investors per day from their database of investors. If you have never raised capital from private individuals then go to http://www.breadstreet.com/regdetail.htm and do some research it is very good information
Q: How do you calculate returns per individual investor and value of fund?
If you create a fund through a LLP or S-Corporation, how do you calculate returns per individual investor and value of fund? For example: 5 people each invest $2000 each on January 1st. Each individual investor cannot take out initial investment until 6 months after deposit. September 1st, value of fund = $11,000. Investor A wants to take out total initial investment plus gains. How do you maintain the value of the fund with that loss?
A: lets say shares cost $1000 each, meaning the NAV (net asset value) of each share is $1000
so when each investor paid $2000 they each got 2 shares.
On september 1st the value of the fund is $11,000 or $1,100 per share. Investor A takes out his money, he sells his shares to someone else for $1,100 per share or perhaps somehow he can just take out his $2,200. Then what would remain is a fund worth $9,800, with 8 shares, each worth $1,100.
Q: What would be an attractive offer to an investor?
I am in the process of opening a child care center. I have extensive experience and all of the required credentials. I am in need of an investor and I have found 2 people willing to consider.
I would like an investor however, I would like to be able to buy them out eventually. So let's say that I need $50,000 to open comfortably. What type of offer (percentages etc. ) do you think I should propose to investors so that it will be attractive to them and also give me an opportunity to buy them out at a later date.
A: No investor will talk to you unless you provide them with a valid business plan. Go to http://www.sba.gov , http://www.score.org or http://www.bplan.com for sample business plans and instructions on how to write a business plan.
Then, go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you.
SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).
SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.
Q: What is the best way to find business investor's funding partners for a business?
I wanna brand off from the company I work for and start my own business I am 100% sure it will work no doubt in my mind. I want to find an investor to fund the startup. It does take a little to start it up but you'll get your initial investment back in months and from that point on it will just be profit.
A: There are two ways of doing this.
1) There is a huge network called Jump Start (I cant remember the website address) which has 50 Angle Investors. Their job is to find start up companies like yours and fund it. Last year they invested 18 million dollars in various start up companies.
2) You may want to sign up on http://www.GlobalLinker.com They have a growing small business network and you should be able to find investors and partners. They offer free business tools and global networking platform.
I wish you all the best!
Q: What signs can an investor pay attention to when looking for a stock to split?
How can a person tell if a stock will split? What signs can an investor pay attention to when looking for a stock to split?
A: Generally a stock split will happen for one of 2 reasons:
1) the company pays a regular dividend, but doesn't want to pay one this time around. They would then call the stock split a stock dividend, but essentially they are the same thing.
2) If the stock price is above what the company considered their optimal range. For example, if Company A feels their stock trades best at a price between $15-$45 then they will leave it alone. If all of a sudden the stock is trading for a long period of time at $70, the company would split the stock to bring the price back into the optimal range.
Signs of a split: if a company has a regular dividend coming, but earnings are down this year you may see a split instead of a cash dividend. Also if the company stock is trading much higher than its averages have been for the past few years then a split may be on the horizon as well.
Hope this helps!
Q: How to find an investor to open a specialty shop?
I would like to know how to find an investor who will finance a business that has the growth potential for franchise. I have a product that is unique and everyone loves. I just can't do it alone.
A: Please also include details like what is the product, pricing, locations, investment amount and Pay back period and ROI.
Q: As an investor, I want to start forming syndications - how do I start, and how do I find investors?
I want to form real estate syndications for investors to put their money into. I am a private investor that specializes in residential property, and primarily in the Florida market. How do I get started finding investors, and advertising for the best investors? and what concerns or issues are out there for me to be aware of???
A: This will help you on your concerns and what to be aware of.
Just click on a section in Real Estate than on the State of Floirida.
http://www.usinvestmentproperty.com/laws/hi.html
Q: Where to find free start-up finance spreadsheet to show potential investor eg 3yr revenue projection, etc?
I co-founded a start-up. Business plan is in the work. I still need to work on the financial section. I know I should have a CFO work on it. But I don't have $$ to pay/hire a CFO. So I get to wear the finance hat too among other roles. Do you know of free finance spreadsheet templates I could download to use? Need to finish biz plan to show potential investors. Can't show current biz plan as is without figures. Biz plan doesn't mean anything to investors without 3 year financial planning such as revenue projection, dev't cost projection, marketing budget projection, potential # of people for hire, other related finance figures of interest to potential investor. Tks for your help in advance!
A: http://www.exinfm.com/free_spreadsheets.html
Q: How does one go about becoming a viatical investor?
Are there companies that specialize in buying viaticals (life insurance policies), and how does one become an investor in one of these companies, and what companies are there out there looking for investors?
A: check out:
http://en.wikipedia.org/wiki/Viatical
Q: How can I find an investor in Long Island, NY to invest $ to open my children's yoga studio?
I currently teach children's yoga in my home and at the homes of clients, with a small client base. I have a business plan and location for a studio to rent, but since a grant is difficult to get for such a project, I am looking for an investor for a very lucrative project. Ideas?
A: You're probably best off going to a bank and getting a small-business loan.
Q: When a broker lends an investor shares to short, does the original owner of the shares have to consen?
I mean that a brokerage house needs to borrow shares from another investor to give to this investor so he can short the stock. But does the orginal investor have to consent to having his shares taken away?
A: Technically yes, but since most shares are held in brokers' accounts, the consent is automatic, according to the agreement between broker and client. the client does not know the shares are borrowed, and the broker is effectively lending his own shares.