Finance involves a wide range of academic fields, and there are many types of financial products. For novices in finance, some financial terms seem obscure. You are not familiar with financial terms, but you must understand when you are in love. Even if you have never talked about it, it will not be jerky. Today, from such an alternative perspective, we will teach you to understand those high-end financial terms in seconds.
01: What is M&A?
A rich man fell in love with a woman, and thought that this woman could live a good life and earn money, so the two got married and started to live a down-to-earth life. Even if divorce is possible in the future, it will wait until the children can live independently.
- This is M&A
02: What is a private equity fund?
A rich man fell in love with a beautiful girl and wanted her to be his companion; but the girl fell in love with the rich man's money, and happened to be short of money, so she agreed to be together. The two parties had already negotiated before: they will live together for a long time, and they will break up when they are almost done.
——This is private placement
If the girl has a strong foundation, the big money will marry her, and after receiving the gift money, the two will divorce.
——This is the exit of private equity funds after the company goes public
If the girl is not ready to get married, the big money may introduce the girl to other big money as a partner.
——This is how private equity funds exit by selling equity
Or the big money asks the girl's family to "eat mine and return it, and take mine back".
——This is how private equity funds exit through equity buybacks
If the girl gets into trouble with the rich man, the rich man may buy the murderer to kill the girl and take away valuables from her.
——This is how private equity funds exit in liquidation
03: What is listing?
It is said that a girl with a good foundation may have pockmarks on her face, or her figure may not be curvy enough, but she is not mentally retarded or disabled, and her spirit is normal. At this time, the matchmaker came to tell the girl's family, let me tell you and let your daughter get married.
- This matchmaker is a broker
So the matchmaker took the girl to follow the requirements of her future husband's family for beauty treatment and weight loss.
——The beauty and slimming are accountants, lawyers, and property appraisers
When meeting the in-law's family, the in-law's family may think that the girl's hairstyle is not good-looking or the clothes do not fit well, and the matchmaker will take the girl back to make arrangements until the in-law's family nods.
——This in-law’s family is the Securities Regulatory Commission
In the end, the girl got married and received a lot of gifts
——This is the initial public offering, also called listing or IPO
After a girl gets married, if a rich man takes a fancy to her at this time, he bids a lot of money and says to the woman, "Divorce with you man and come with me!" The woman's husband thinks the price is good and divorces.
——This is the tender offer and delisting of listed companies
04: What is venture capital?
It is said that a rich man has a lot of money in his pocket but he likes to meet girls in online chat rooms. After entering, I found a lot of girls who claimed to be beauties, so I invited the girls to eat, drink and have fun, and threw money on the girls. but! The girl who is asked out may not be a beautiful woman, and may be a "dinosaur" in many cases. But the rich man doesn't care, and has dated more than N girls, because he firmly believes that even if he can meet a beautiful woman, he can ask him to be his wife.
- This approach is venture capital
Moreover, at the same time, the so-called beautiful "dinosaur" who likes to chat online is eating, drinking and having fun.
- This is the dot-com bubble
In fact, real beauties are asked away without chatting online, while "dinosaurs" and rich men die at the sight of each other.
- So the Internet bubble burst
05: What is angel investment?
A rich man subsidized a little girl's various educations when she was young. Not only did she provide tutoring for test-taking ability in cultural subjects, but also required her to be proficient in all aspects of piano, chess, calligraphy and painting, so that she could grow into a high-quality person.
——This is Angel Investment
(to be continued...)