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Re: xyz1002 post# 45850

Tuesday, 09/18/2007 8:32:37 PM

Tuesday, September 18, 2007 8:32:37 PM

Post# of 246969
xyz1002'

Cornell, Highgate, SWVC, for that matter, are (VC's) venture capitalists. They invest cash, backed by company stock, in different debit structures & or takeover prospects, for a ROI.

Seaways Valley Capital Corp's business plan is to gain interest in the ownership of actual businesses. Cornell & Highgate are aloud to own up to 4.9% of this company, under SWVC's debit facility.

This is why I call them VC's. They invest capital in companies! And depending on the debit structure, and conversion limits, can and do sell stock in the company. They also buy warrants sometimes. These warrants are common stock and tradable also.

Any time a venture capitalist gets common stock, they can sell. If the debit structure restricts the conversion of the stock backing the funding. Then they can't sell.

I call resticted stock converted to common, VC's stock and I think the principles of these firms, "the big guys", also accumulate low on the open market, before a run. Granted this is from the darkside, personal buying & selling, but I think it happens.
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A limited partnership can be for any function. Capital investment or actual business operation. Hedge funds, buy & sell stock & invest cash into companies also. Actually equity companies are just that. They turn cash into investment vehicles, be them stock, company ownership, bonds, mutual funds, or event the arbitrage game or any thing which can produce a ROI.

I just don't see the problem with calling a small group of equity companies which invest in the OTC, VC's only! Some may be LP's, some hedge fund's, some just rich people that form a company to invest, by funding startups.

I'll continue to use the terms I do. Mistake or not, in your mind!! Misinformation & teaching the wrong thing is not my goal. Sorry you feel it is. I am wrong about many things, from time to time. But don't, teach errors, when I know I'm wrong. Besides VC's is easyer to type then, the company which loaned funds to the company we are shareholders in.

So what do you call a private equity business, which invests cash into companies? Didn't actually read it in your post.