Tag Archives: investing

President, Congress pass bill to allow venture capital funding via crowd sourcing

Earlier this month, President Obama sign the JOBS bill into law with strong bipartisan support, and no this isn’t the one you’re thinking of. This one is designed specifically for funding start-ups with a particular focus on crowd funding (i.e. Kickstarter).

Explained by author and professor, Jeff Jarvis:

The JOBS bill being signed by President Obama today is critical to the emergence and growth of the next generation of industries as ecosystems.

Those ecosystems are made up of three layers: platforms, entrepreneurial ventures, and networks.

Platforms (Google, Amazon, Salesforce, Facebook, Kickstarter, Federal Express, Foxconn), which make it possible for entrepreneurial ventures to be built at lower cost with less capital and reduced risk at greater speed. To provide the critical mass that large corporations used to provide — to, for example, sell advertising at scale or acquire distribution or acquire goods or services at volume — sometimes these ventures need to band together in networks (Glam, YouTube, Etsy, eBay).

The bill supports this flourishing start-up trend by updating some outdated laws, from the 1930s, and correcting some from the Sarbanes-Oxley Act of 2002.

Of interest to us, the regular people:

  • Entrepreneurs can raise up to $1 million per year through those approved crowd funding channels.
  • Investors with incomes of less than $100K will be limited to 5 percent, or $2K, investments.
  • Those who make over $100K/year will be limited at 10 percent, or $10K.

Previously, one could not sell equity through crowd funding and only registered investors with $100,000 could fund a company. Now, with the crowd sourcing provision anyone can get in on the action.

This is great for the industry and those with a nose for investing, but do be wary. Internet scammers and unskilled entrepreneurs will soon be asking for your money to fund the next Google.

 

Learn more about the billJumpstart Our Business Start-ups (JOBS) Act

 

// Photo – Guano

The Intelligent Investor – by Benjamin Graham – “the best book on investing ever written”

The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.

Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles.

The Intelligent Investor

 

“By far the best book on investing ever written.” – Warren Buffett

The Intelligent Investor – by Benjamin Graham – "the best book on investing ever written"

The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.

Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles.

The Intelligent Investor

 

“By far the best book on investing ever written.” – Warren Buffett

The definition of investment banking and its lines of business

An investment bank is a financial institution that:

  • Assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client’s agent in the issuance of securities.
  • Assists companies involved in mergers and acquisitions.
  • Provides ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities.

Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (Glass–Steagall Act) until 1999 (Gramm–Leach–Bliley Act), the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G8 countries, have historically not maintained such a separation.

There are two main lines of business in investment banking.

- The sell side which involves trading securities for cash or for other securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.).

- The buy side which involves dealing with pension funds, mutual funds, hedge funds, and the investing public (who consume the products and services of the sell-side in order to maximize their return on investment) constitutes the “buy side”.

Many firms have buy and sell side components.

An investment bank can also be split into private and public functions with a Chinese wall which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information.

An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to Securities & Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulation.

via Wikipedia

New iPhone app: Bloomberg Radio+

There is an awesome new iPhone app out called Bloomberg Radio+.

If you’re a finance geek like me, then you’ll love these features:

- Bloomberg Radio live 24-hours a day
- Bloomberg shows and interviews available on demand
- Offline listening. Save/download shows and interviews
- Latest market data on companies
- Charts as they are referenced during a show or interview
- Bios of guests
- Customizable scrolling ticker

Plus, it has some surprisingly cool graphics and design.