A financing event whereby venture capitalists become involved in a fast-growth company that was previously financed by founders and/or angels.
See also "Angel".

[Asset / Asset MCodelling]
See detailed explanations under the heading "institutional/foundations"
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An order by the SEC (Securities Exchange Commission) declaring a registration statement effective (and thereby making sales of securites permissible) before expiration of the statutory 20 day period from the date of filing.
See also "Acceleration Request".

A request (or in some cases, oral communication) to the SEC from both the issuer and the managing underwriters of a public offering, requesting that the SEC declare a registration statement effective.

A report signed by an independant accountant, describing the scope of the accountant's review and expressing an opinion on the quality of the financial statements presented.

A term defined in Regulation D under the Securities Act of 1933 to include various financial institutions; certain corporations and trusts; an officer or director of the issuer; as well as a natural person with a net worth (with spouse) of US$ 1 million; or revenues of at least US$ 200'000 for the previous 2 years.

A term defined in Regulation D under the Securities Act of 1933 to include various financial institutions; certain corporations and trusts; an officer or director of the issuer; as well as a natural person with a net worth (with spouse) of US$ 1 million; or revenues of at least US$ 200’000 for the previous 2 years.

The theoretical price a A meeting during the public offering process gathering representatives of the issuer, the underwriters, their respective lawyers and the issuer's accountants.
Its purpose is the conduct the due diligence process and to draft documents such as the registration statement and the prospectus.bond or a debenture would sell at assuming market interest rates were to remain at current levels.

The most commonly used accounting method, which reports income when earned and expenses when incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid.

Expenses which are incurred as of a given date, but for which payment is not yet made.

An increase in the market price of a discounted bond resulting from an approaching maturity date, rather than from declining interest rates.

An additional tax on earnings that a business retains in an attempt to avoid the higher income taxes the owners would be subject to if the earnings were paid out to them as dividends.

The value of improvement made by a venture capital company (Venture Capital) to an enterprise thanks to its know how and coaching.

Also

The value of improvement made to goods or services at any particular stage of their production.

Preferred stock whose dividend rate changes periodically based upon changes in a reference interest rate.

[American Depositary Receipts]
ADR's are certificates that confirm that the shares which they represent are deposited in the name of the holder with a depository.
The same applies to ADS.
However, ADS represent usually the same number of shares as the original foreign shares.

[American Depositary Shares]
ADS's are certificates that confirm that the shares which they represent are deposited in the name of the holder with a depository.
The same applies to ADS.
However, ADS represent usually the same number of shares as the original foreign shares.

A person that controls, is controlled by, or is under common control with (directly or indirectly) the entity specified.
The SEC takes the position that a corporate officer, director or 10% stockholder is presumed to be an affiliate of the corporation.

[Alternative Investment Market)
The London Stock Exchange's market for new, fast growing companies.
AIM offers the benefits of operating both an electronic quote and order trading facility.
Trading began on AIM in June 1995.

A regulatory proposal issued by the SEC in November 1998 designed to streamline the regulatory environment in the United States for private and public offerings.

A meeting during the public offering process gathering representatives of the issuer, the underwriters, their respective lawyers and the issuer's accountants.
Its purpose is the conduct the due diligence process and to draft documents such as the registration statement and the A meeting during the public offering process gathering representatives of the issuer, the underwriters, their respective lawyers and the issuer's accountants.
Its purpose is the conduct the due diligence process and to draft documents such as the registration statement and the prospectus.

An offering of securities which is realized at the condition that all the offered securities are sold.
See Best Efforts Underwriting and Firm CommitmentUnderwriting.

[Asset/Liability Modelling]
See detailed explanations under the heading "institutional/foundations"
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Designates the performance of a fund as compared to a benchmark.
A positive Alpha stands for outferformance, a neagtive alpha for underperformance against the benchmark

Funds which invest in various types of investments which are not classified as being traditional, such as >i>hedge funds, venture capital funds, buy-out funds, real estate funds and ever more esoteric vehicles.

An option that may be exercised at any time prior to expiration
See European Option.

[American Stock Exchange]
Until its merger with the Nasdaq(USA) in October 1998, the second largest securities exchange.
Now part of the Nasdaq-Amex Market Group (Nasdaq National Market).

[Asset / Managers Modelling]

An accounting procedure that gradually reduces the book value of an intangible asset through periodic charges to income.

A person usually employed by an investment bank who “follows” a company and issues regular reports on its quality and prospects.
The skills and reputation of an analyst will often play a major role in the selection of an underwriting syndicate as his reports can increase the interest in a company's stock after its offering.

A person or entity that provides financing to companies that have progressed beyond the start-up phase but are not yet ready for venture financing.

Capital raised for a private company from indepent wealthy investors.
This capital is generally used as seed financing.
See also "Seed capital".

A private investor who provides both finance and business expertise to an investee company.

Provisions in an option or a convertible security (such as convertible preferred stock, which is the typical form of venture capital or mezzanine investment) which protect the holder's investment from dilution as the result of later issues of stock at a lower price.

Provisions in an option or a convertible security (such as convertible preferred stock, which is the typical form of venture capital or mezzanine investment) which protect the holder’s investment from dilution as the result of later issues of stock at a lower price.

Provisions that provide protection against dilution of a investment and apply the lowest sale price for any shares of common stock (or equivalents) sold by the company after the issuing of an option price or conversion ratio for existing shareholders.

Anti-Dilution provisions that apply a weighted average formula of the price of various financing rounds.

SEC rules under Regulation S that apply to offerings initially made outside the USA to prevent subsequent sales into the USA in violation of applicable restrictions or registration requirements.

Provsions in a company's charter and by-laws that are designed to discourage undesired take-over bids.
See Bank Cheque Preferred Stock, Poison Pill, Shark Repellent and Staggered Board of Directors.

Laws designed to prevent businesses from monopolizing a market or restraining free trade.

Unpaid dividends due to holders of preferred stock.
See Cumulative Preferred Stock.

A document filed with a state by a corporation's founders, describing the purpose, place of business, and other details of a corporation.

Any item of economic value owned by an individual or corporation, especially that could be converted to cash.
Examples are cash, securities, accounts receivable, inventory, office equipment, a house, a car, and other property.

Partial or total takeover of a company through the purchase of assets rather than shares.

Take-over deal financed by the purchase of assets of the acquired company.
The non essential assets for the business are sold in order to reduce debt.

Braking up of a company after take-over through the sale of business lines or other assets.

A committee of the board of directors consisting of independant directors, responsible for selecting and overseeing the work of outside auditors.Under the rules of NASDAQ and other stock exchanges most public companies must have an audit committee.

A report signed by an independant accountant, describing the scope of the accountant’s review and expressing an opinion on the quality of the financial statements presented.