📈 Finance terms you should know before your law firm interviews!📈
🏦 Debt finance: raising money by borrowing money (think loans and bonds).
🏦 Equity finance: raising money by selling company shares (either to private investors or to the public).
🏦 Leverage: when you borrow a lot of money (debt) compared to how much you invest yourself (equity). Leverage enables companies to buy things they couldn’t otherwise afford, to make a higher return than if they spent only their own money.
🏦 Capital markets: the market in which shares and bonds are bought and sold. Companies go here to raise longer-term finance.
🏦 Venture capital: a type of equity finance. Venture capital firms raise a fund and invest small stakes in earlier-stage companies. The whole idea is, ‘I’m going to bet on many companies, most will go bust, but if even one or two are the next Uber, it’ll be worth it’.
🏦 Private equity: also a type of equity finance. Private equity firms invest in established companies using a lot of borrowed money (leverage). They’ll buy majority stakes in companies, make changes (like install new management) to increase its value and then sell the company to make money for themselves and their investors.
🏦 Institutional investors: investors with large amounts of money, investing on behalf of someone else, such as pension funds (when you pay into your pension) and insurance companies.
🏦 Insolvency: when a company can’t pay its debts on time OR its liabilities are bigger than its assets.
What else should you know for your interviews?
Join us at 6pm on Tuesday 12 December to learn ‘How to stand out in law firm interviews’, with Gemma Baker from Willkie Farr & Gallagher! Register via the link in our bio.
🏦 Debt finance: raising money by borrowing money (think loans and bonds).
🏦 Equity finance: raising money by selling company shares (either to private investors or to the public).
🏦 Leverage: when you borrow a lot of money (debt) compared to how much you invest yourself (equity). Leverage enables companies to buy things they couldn’t otherwise afford, to make a higher return than if they spent only their own money.
🏦 Capital markets: the market in which shares and bonds are bought and sold. Companies go here to raise longer-term finance.
🏦 Venture capital: a type of equity finance. Venture capital firms raise a fund and invest small stakes in earlier-stage companies. The whole idea is, ‘I’m going to bet on many companies, most will go bust, but if even one or two are the next Uber, it’ll be worth it’.
🏦 Private equity: also a type of equity finance. Private equity firms invest in established companies using a lot of borrowed money (leverage). They’ll buy majority stakes in companies, make changes (like install new management) to increase its value and then sell the company to make money for themselves and their investors.
🏦 Institutional investors: investors with large amounts of money, investing on behalf of someone else, such as pension funds (when you pay into your pension) and insurance companies.
🏦 Insolvency: when a company can’t pay its debts on time OR its liabilities are bigger than its assets.
What else should you know for your interviews?
Join us at 6pm on Tuesday 12 December to learn ‘How to stand out in law firm interviews’, with Gemma Baker from Willkie Farr & Gallagher! Register via the link in our bio.
thecorporatelawacademy
2024-04-29 07:45:20
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