In Finance, What Is a Previous Close?

Financing, in English, is financing. In a narrow sense, it is the behavior and process of raising funds for an enterprise. ^[1] In a broad sense, financing is also called finance, which refers to the financing of monetary funds. The parties use various methods to raise or lend funds to the financial market. The "New Palgrave Economics Dictionary" explains financing: financing refers to the means of currency transactions used to pay for purchases in excess of cash, or the means of currency used to raise funds for obtaining assets.

Financing

(Financial term)

In a narrow sense, financing is a business

1.Bank

When you need financing, you must first think of a bank. Bank loans are known as the "reservoir" for entrepreneurial financing. Because banks have strong financial resources and most of them have government backgrounds, they have a "mass foundation."

2. Financing platform

Due to the difficulty of financing from banks, third-party financing platforms are a good choice for financiers. For example, the largest third-party financing platform in China, the investment and financing industry, provides more professional investment and financing information services.

3.Credit card

With the innovation of commercial banking business, credit cards are becoming more and more electronic.

Corporate financing requires certain financing skills. In formal discussions with investors

1. At least three parties: the project sponsor, the project company, and the fund provider.

2. Fund providers mainly rely on the project's own assets and future cash flows as guarantees for repayment of funds.

3 Project financing is a form of financing with no recourse or limited recourse, that is, if the project is unable to repay the borrowed funds in the future, creditors can only obtain the income and assets of the project itself.

Pawning means that the pawner takes his movable property or property rights as pawn or mortgages his real estate as pawn to the pawnshop, pays a certain percentage of the cost, obtains the pawn, and pays the interest on the pawn within the agreed period and repays the pawn , The act of redemption.

By comparing the two international mainstream models, it can be found that brokers directly provide

1. The founder's equity is evenly distributed, and the equity is too scattered

Many entrepreneurs believe that the equal distribution of equity by several founders can allow everyone to work together without disputes over interests. In fact, otherwise, one of the biggest advantages of startups is their efficient execution and flexibility, and the founders are often at the center of this process. Looking back on all successful companies, we will find that almost all of them have a very special founder, Microsoft, Apple, Amazon and so on. In the early stages, they represented the company, and they were driving the company forward. And this driving force not only comes from its own responsibility, but also from the decision-making power of "everything is up to me". If the average shareholding of several founders is too scattered, it will inevitably affect their decision-making efficiency. At this point the biggest advantage of startups: "executive power and flexibility" has been lost.

2. Investors who care about money and ignore the money behind it

When it comes to financing, of course you need to focus on money. But as we have analyzed before, the connection between entrepreneurs and investors is like marriage, and marriage with unsuitable investors is likely to destroy entrepreneurial projects. Therefore, pay attention to the investors behind the funds, their industry background, the resources they have, and the projects they invest in to see if they can bring real value to themselves. When investors look at a project, they often need to do a very detailed due diligence on the project and its team backbone. Similarly, as an entrepreneur, when looking for investment, they also need to do a similar due diligence on the investors behind the funds.

3. Part-time entrepreneurship hopes to get money and then full-time

Entrepreneurship is not only a full-time job, it is also a career. Part-time entrepreneurship means that you don't have confidence in your project or confidence in yourself, because you put it in the second backup position. At the same time, part-time entrepreneurship leads to a lack of focus and depth. Investors are not fools. If they don't have confidence in themselves (project), how can they invest!

4. The team raised funds without running in

As we said above, when investors look at a project, they often need to conduct comprehensive due diligence on the project and team. Many investors even look at the team. The team is reliable, and the selected project will not be too bad. Therefore, before planning to raise funds, it is necessary to run the team well.

5. Start financing without measuring your own costs

It is financing for entrepreneurs, but it is investment for investors. Investment is about return on investment, so understanding the cost of the project you invest in is critical. At the same time, a detailed calculation of your own project costs is not only necessary for your own internal management, but also the basis for financing. When Huang Renyu, a famous historian, summed up the reasons for the late arrival of modernization in China, he believed that the greatest reason could not be based on the precise management of numbers. This also applies to micro-enterprise management.

6. Only start financing when the flow of funds is about to break

If capital is the blood of socio-economic development, then capital flow is the prerequisite for an enterprise to continue to operate. Investors' investments are often the only source of funding for startups in the early stages, so they should always pay attention to their own capital flows. Preparing for financing in advance not only gives yourself more choice and greater bargaining power, but also gives investors plenty of time. Wang Xiao believes that financing should be planned when the funds are sufficient.

7.Finance to all investors who know it at the same time

This kind of thinking is the same as students who are just out of school looking for work. They think that the wide net can catch more fishing. However, in fact, Guangsha.com means that it is not clear about its true needs and its investors' needs. No matter how fast a ship with no purpose or direction runs, others will never know where it will arrive. Therefore, finding the right investment talent for you is the real king.

8. External shareholder holding

Investors will only invest in projects that meet their return on investment. If external shareholders control a project, the prospect of this project is undoubtedly greatly reduced. Investors will wonder whether the project will proceed in the direction of the founding team or in the direction of the controlling shareholder.

9. Blindly optimistic overvaluation

As an entrepreneurial team looking for investment, being able to obtain a high valuation is not only an affirmation of their own value, but also one of its driving forces. But for an early start-up project that has not yet generated revenue, its valuation often depends on the cost of developing to the next stage. The final value of a startup company is more reflected in the acquisition or listing stage.

The legal issues involved in financing include the following eight aspects:

First, the legal subject status of the financier. According to the law, as a contractor of an enterprise,

One,

Comprehensive credit is a bank that provides loans to certain companies with good operating conditions and reliable credit for a certain period of time. The comprehensive credit line is submitted once by the enterprise and approved by the bank. Enterprises can use instalments according to their own operating conditions and repay them on loan. It is very convenient for enterprises to borrow money and save costs. This way of granting credit to banks is generally for companies with well-managed, credible and long-term cooperative relationships with banks.

Credit guarantee loans are available throughout the country, and credit guarantee institutions for small and medium-sized enterprises have been established, and most of these institutions are implemented in the form of membership management. The guarantee fund is generally composed of local government funding, member's member funds, and so on. When members borrow money from banks, they can be guaranteed by SME guarantee agencies, and SMEs can also seek guarantee services, and guarantee companies solve these problems. This is because guarantee companies are more flexible with collateral than banks.

If the company's products have a good market, in the case of insufficient funds and poor financial management, they can choose a third-party guarantee to provide loan support to the buyers of their products. In the production of collaborative products, production funds must be replenished, contract supervision with local banks, and loans provided separately.

SMEs and the use of high-tech achievements will also receive active credit support from banks to promote enterprises to speed up the transformation of results. In addition to providing working capital loans, banks can apply for project development loans.

Financing naked short selling

Naked short selling means that the short seller does not own the stock or borrow the stock, but only needs to pay a certain margin and borrow the stock within the prescribed T + 3 time and deliver it to the buyer. For short selling, if the short seller fails to borrow the stock on time and deliver it to the buyer on the settlement day, then this is called delivery failure, but the delivery failure is not illegal. Even if the delivery fails, the transaction will continue Until delivery is complete.

Financing Rise Rules

The ascending rule, also known as upselling and shorting, means that the price of short selling must be higher than the latest transaction price. This rule was originally designed to prevent the shortfall in the financial crisis from causing a plunge. China's ascending rule: "The declared price of securities lending must not be lower than the most recently traded price of the security; if no transaction has occurred on the day, the declared price must not be lower than the previous closing price. A declaration lower than the above price is invalid. Therefore, China's securities market will strictly implement the ascending rules to regulate the behavior of short sellers in the initial stage of margin financing and short selling.

Margin rules

Credit margin has an initial minimum margin and a maintenance margin. Investors must deposit an initial margin when opening a securities credit trading account. The establishment of a maintenance margin is to prevent the credit risk of the underlying stocks of credit transactions due to market price changes.