Venture capital is form of business financing. It generally takes the form of a cash investment in exchange for shares in the company. Venture capitalists may also contribute managerial and technical expertise and indeed most venture capitalists require a large say in the running of…
A venture capital fund is a form of investment in which third party investors, such as investment banks and individuals, pool their money in order to invest in projects. Such projects are often high-risk projects and the business promoting the project may be unable to…
A recent Wall Street scandal has brought the term Ponzi scheme into the news again. Named after Charles Ponzi, a Ponzi scheme is a fraudulent investment scheme promising high rates of return with minimal risk. Typically, it generates returns by acquiring new investors whose investments…
A Greenshoe Option is an option available to the underwriter of an initial public offering, (“IPO”) to issue more shares if the IPO is oversubscribed. It is named after the Green Shoe Company which was the first to issue such an option.
A noisy withdrawal is the public withdrawal of legal representation in which the lawyer, having knowledge of the client’s existing or potential improprieties, such as a serious breach of securities law, disavows work done for the client and notifies the proper authorities of his/her withdrawal.
In many leases there is a clause known as a Mother Hubbard clause which states that any property adjacent to property described on the lease is automatically included in the lease. In Oil and Gas leases the Mother Hubbard clause usually found in the Granting…