123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Secondary Market Investment Via The Independent Stock Market Helps You Raise Capital

Profile Picture
By Author: Gwendolyn Evans
Total Articles: 3
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

In the current economic downturn the need for ready cash has never been greater. Even thriving businesses need cash to keep their doors open, the stock rotating and the business growing. Growth costs money as do stock buyouts or take over's of other companies. So what does one need to raise cash easily?

Well the conventional method involves a lot of paperwork. A healthy balance sheet, audited profit statements showing a consistent history for as long a period as you can (3 years is ideal as that is the minimum for listing on a stock exchange). Then you need to draw up comprehensive and workable plans, budgets and the like.

Then of course your Bank manager will tell you that he will fund an overdraft, at huge interest but selling capital is not what they do. To get a permanent investment you need to find a venture capitalist. Now these guys are around, usually very well off because they are hard eyed businessmen who venture their capital only where they are absolutely certain of making a healthy return. As part of the deal you will find you have taken their money, given up shares and voting rights on your board ...
... plus you might have mortgaged your house and sold your children into slavery giving the 'belt, braces and tie around the middle' that they want to lend you the cash. There is no ways they are going to lose a cent.

Now in many instances that is fine. If you secure capital from a Venture Capitalist you are probably a sound investment, so why bother with them and rather get yourself listed on the Stock Exchange. Well the requirements for listing on the exchange are very stringent. Very strict regulation controls entrance and, for a start you will need at least 3 to 4 years profit history, audited, budgets and plans and an awful lot of cash to put up to fund the establishment of the share register, the issuing, the publication of the prospectus and so on.

Depending on your size you might find yourself forking out a million or two and losing 6 months to a year in the preparation. If you have the cash available and the time to spend then great, you may find yourself the president of a listed company. And then you will be fully involved is the hurly burly of corporate life, dealing with stockholders and the like.

But that may not be what you signed up for. You own a successful company manufacturing and marketing widgets which are in huge demand, but you need cash now to put a new line into production, and anyway this is what you do, you dress casually and you are good at knowing the shop floor, the lines that are selling and your customers.

This is where the Independent Stock Market gives you access to Secondary Market Investment and comes into its own. It can assist you find investors in your business without the long and tedious paper work and endless meetings with attorneys and accountants. If you are looking for easy capital the Independent Stock Market may suit you.

In order to raise capital access to Secondary Market Investment is possible via the independent stock market.

Total Views: 162Word Count: 535See All articles From Author

Add Comment

Investing / Finance Articles

1. How To Protect Your Crypto Wallet: Essential Tips Beyond Passwords
Author: Eldon Ryder

2. Ipo Grey Market Premium (gmp) Guide | Live & Upcoming Ipo Gmp Trends
Author: finowings

3. Top Benefits Of Enrolling In A Certificate Course In Banking
Author: sandeep

4. Crizac Ipo Gmp 2025: Key Dates, Price Band & Gmp Update
Author: finowings

5. Stock Market Advisory: The Growing Importance Of Professional Stock Advisory Services
Author: Vinay

6. What Is Sip And How Does It Help Build Wealth?
Author: Sagar Shah

7. Choosing The Right Accounting Firm In East And South Auckland: What You Need To Know
Author: WhizBiz

8. Goldco Review: Best Ira Guide For Investors, Retirement Planners, & Retirees
Author: Gold and Silver Investment News

9. Navigating Financial Growth With Avendus
Author: Drishti Desai

10. The 4 Types Of Income You Need For True Financial Freedom
Author: Wealth Samurai

11. Why Hyderabad Millennials Are Choosing Personal Loans Over Credit Cards
Author: anilsinhaanni

12. How A Retail Lending Specialist Can Help You Secure The Best Loan Deals
Author: sandeep

13. How Knee Replacement Improves Quality Of Life For Arthritis Patients
Author: uttam

14. Stock Market Advisory: Unlocking Investment Success With Share Market Advisory Services
Author: Vinay

15. The Rise Of Investment Banking Companies In Hyderabad’s Financial Scene
Author: Verity knowladge solutions

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: