![]() It’s worth noting that the initial stages of startup funding are limited to those with especially large pockets, people called accredited investors, because the Securities Exchange Commission (SEC) believes that their high incomes and net worths help shield them from potential loss. Anyone can invest in a public company, and the startup founders and early backers can sell their stakes to realize a big return on investment. Finally, a startup may decide to become a public company and open itself up to outside money via an IPO, an acquisition by a special purpose acquisition company ( SPAC) or a direct listing on a stock exchange. ![]()
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