Financing: titles, values, private equity

Financing: titles, values, private equity

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Problems with your business funding? In Evolutiza Lawyers & Tax Advisors we offer you all the necessary information about different mechanisms that you may find useful in the national or international sphere.

In consonance with our policy of keeping the latest trends in the economy and the law, this time we will talk about ways of financing, including within this concept three broad categories: bonds, securities and private equity.

When we talk about bond, we refer to the documents necessary to exercise the right literal expressed in it.

In the commercial sphere there are many classifications regarding these bonds, the most colloquial and common distinction being that divides these in, if are regulated by law, by subject and by circulation.

The great advantage of this financial instrument is to fulfill the function of serving the movement of goods by means of a document, without having to physically carry the money.

When we speak of shares, financial, we are referring to documents of a commercial nature in which an equity private law is incorporated. The most popular types of securities are stocks and bonds.

These stock are traded on stock markets, what is colloquially know as the stock exchange. In almost all the cases, these markets allow a point to get extra funding for companies as, for example, in the case of the issuance of new shares.

Finally, we must stop at what is known as private equity or venture capital. It is a type of financial activity that could be defined as investment in securities through a negotiated process, the action consisting in the acquisition by one entity of the majority package of shares of a company. The company thus becomes the majority owner of the company, usually temporarily, because after a while usually it makes the sale of the shares purchased. Normally, the purpose of the investment is to obtain a return in the operation, as it invests in private companies with high growth potential, but with a big factor of illiquidity.

In Evolutiza Lawyers & Tax Advisors, as specialists in international markets and funding at national and international level we help you find the financing that best suits your profile, not hesitate to contact us!

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