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GED Social Studies 1.1 Civics and Government
Ever heard of a "living document"? They eat and breathe just like the rest of us! They even walk around on their own two legs. Okay, fine—maybe t...
Principles of Finance: Unit 1, Intro: Company Formation, Structure, and Inception: Unit Intro 43 Views
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Description:
Company Formation, Structure, and Inception: Unit Intro. Sorry, Leo DiCaprio fans—we're not going to be breaking down the plot of Inception. We're talking about a different mind-boggling concept: the creation of a new company. We'll talk about investors, equity, lines of credit, IPOs, and so much more. So you can all put away your spinning tops.
Transcript
- 00:00
finance 101 a la shmoop. unit one company formation, structure and
- 00:10
inception. unit intro. this finance course begins with a gossip rag. whether your [finance unit outlined]
- 00:17
tastes skew more toward TMZ or Weekly World News, you know for a newly started
- 00:24
company, you know with salacious gossip like who owns what? who did what to whom?
- 00:29
what's the legal structure of ownership? well if we invest a hundred bucks and
Full Transcript
- 00:34
the company does well what does that money turn into in ten years? a butterfly?
- 00:38
or hopefully a whole lot more than 100 bucks. but the most important element to
- 00:42
take away from this juicy unit is that companies are people. not just the
- 00:48
products they sell. okay so maybe companies don't slip and fall on icy
- 00:51
sidewalks and maybe they aren't eligible to win the voice, so they're not exactly [company slips on sidewalk]
- 00:57
like people. but the best companies serve products that are a direct reflection of
- 01:01
the people who founded and run them. well in this unit we'll focus on a prime
- 01:06
fictitious ish example the sauce company. as you'll discover the seemingly
- 01:12
innocent and tiny decisions the founders make in the formation of the sauce
- 01:17
company will have enormous wealth impact on them a few years later. you'll become
- 01:21
aware of these nuances in unit one so you know not to lose money in your own
- 01:26
financial future. we're talking about the methods in which companies get financed [wheel of fortune spins]
- 01:30
and use their financing partners to play both offense and defense in the
- 01:35
corporate games they play. private investors public investors equity debt
- 01:40
lines of credit preferred stock IPOs secondary offerings yeah well these are
- 01:46
all terms you'll digest and speak fluently soon, but for now well we'll
- 01:51
stick with the wild gossip. what are we doing here company's free
- 01:55
much like paintball and fleeting stuff oh yeah but that investment banker
- 02:00
nowhere suit IPO what a fan is felons public finally Amazon every a mature [summary listed]
- 02:08
companies not it's not you. ok by the end of this unit you should be
- 02:15
able to: identify the options you have when you form a company identify a range
- 02:20
of financing alternatives in building a company. understand what investment banks
- 02:25
and bankers do all day for a living. understand the special process of
- 02:29
fundraising called an IPO or initial public offering, and finally recognize
- 02:35
the need for reward to investors when there's risk. [objectives listed]
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GED Social Studies 1.1 Civics and Government