Option for private equity investors to purchase shares at a discount. Typically associated with mezzanine financings where a small number of shares or warrants are added to what is primarily a debt financing.³

Secondary Purchase is purchase of stock in a company from a shareholder rather than purchasing stock directly from the company.⁵

Equity Offerings is raising funds by offering ownership in a corporation through the issuing of shares of a corporation’s common or preferred stock.⁵

See Small Business Innovation Development Act of 1982.³

Equity financing is a term used for company’s issuance of shares of common or preferred stock to raise money. Equity financing is commonly done when its per share prices are high-the most money that can be raised for the smallest number of shares.⁵

• Ownership in the capital of a Company. In corporations, it is called “stock”; in limited partnerships or LLCs, it is called “interests” or  “units.”³
• This designation is given to a stockholder’s ownership in a company. The amount of ownership is obtained when an individual or corporation purchases one or more shares of stock (equity shares).  The more equity purchased, the greater the ownership.⁴

Rule 506 of Regulation D is considered a “safe harbor” for the private-offering exemption of Section 4(2) of the Securities Act of 1933. Companies using the Rule 506 exemption can raise an unlimited amount of money if they meet certain exemptions.³

A trust fund established by a company to purchase stock on behalf of employees.³

An elevator pitch is a brief presentation, typically 30 – 60 seconds in duration, presenting the entrepreneur’s concept / solution, business model, “go to market” strategy and value proposition to potential angel or venture capital investors, in order to obtain the attention of the investors, such that they are compelled to learn more about the opportunity.⁶

Economic principle that, as the volume of production increases, the cost of producing each unit decreases.³