In one of Tinkerbells books on economics he found that before he could talk about what they call the crossownership of
stocks he had to talk about differant spheres of influance that interrelate to what he is trying to understand and explain
to the visitor of this web site.
We have what they call the mechanisms of choice
A) The political process
B) The market mechanism
C) Central planing
D)MIxed economies
Undessirable choices
A) Market faliure
B)Goverment Faliure
If you found a good spaceship company on the new York stock exchange to invest in and after
you bought stock in it you found out that you really found out that after the first issuance of stock from the underwriter
and the issuing firm that something happened and you were connected to buying realestate that was scrub land in a foreign
country then the mix of ownership has something to do with this happening also if their were two spaceship companies on the
New york stock exchange and you invested in one just to find out that you were really helping the companies competiters. Tinkerbells
not sure what has happened either but you can almost be sure that you should be completely aware of the problems that he heard
could happen.
Tinkerbell is trying to disemiate for the veiwer of this web site parts of a book that is very
interesting and much information in it he is trying to put in bits of info from it sided with how he understands or misunderstands
the situation or his particular situation and use it as a referance to or can be related to what may be going on and what
you sort of have to understand about building a spaceship and running a spaceship design to build company. You mite lauph
at this but I thought you should be at least interested in some of the faliures that relate to the sucess of simply explaining
a concept that were thought of as too improbable to take on and there reasons why.Like tinkerbell has said before that he
had some printed up material that was about ultra-light motorized aircraft in the background of the affair tinkerbell was
thinging and sort of rechsearching the use of giant airships to transprort farm commodities through the skys to far off destinations
in the late 1970's as this was we found that even back then and the case is the same now if not more so that the proliferation
of small weponds really left the idea stagnent and when he was going to use airship money to fund or help fund the spaceship
development at this time all that he was really told was that 1950-DA was close he did not have at the time the correct vector
well this is the real story they told me if he had had more of a professional disposition that more and better information
would be easier to come by, that the story now we even are geetting into the outer relm of crazy stuff such as are we being
subdude by an alien venture with connections to a bunch of local (earth persons) idots that don't care too much about much
except themselfs believe it or not this is the hardest to explain the delima to peaple sane persons feel that if a giant Asteroid
was goning to hit earth in 20 years that there should be some kind of intelegent discussion about it with out goverment faliure.
WEll first of all what Tinkerbell wanted to make sure got on his web site was a book about raising
capital that had alot of good almost real time information in it (2002) that explained the differant teirs of equity capital
financing that can give you kind of an impression about some of the names you see on tv and maybe who you don,t see and what
they mite be about but first Tinkerbell started to get into it and he thought that he should talk about what you see on tv
(the business channel) first to understand a little more about risk and what kind of ways at least in about 2002 that firms
and companies make their money. So he thought that he would try to combine some of the information because there seems to
be quite alot of it that relates to the differant aspects and definitions.
First of all there are differant tiers in equity financing and equity financing
is usualy the secondary step in financial ideas for your business. So quickley I will list the diferant levels ( they are
called tiers)
1) The cre"me de la cre'me (these are listed as Goldman Sachs,Morgan Stanley,Credit Suisse Fist Boston and other multi-national
firms often refered to as bulge-Bracket investment banks. These banks act as placement agents (remember them) by handeling
major public and private offerings: they also engage in an advisory capacity for mergers and acquistions( very lucrative it
says) and in some cases retail brokerage and they trade securities for their own accounts.
2) Early stage experts ---- below the bulge - bracket firms are a group of firms that once acted as placement agents
for early stage financings but have shifted their efforts to the big leagues. These firms are by definition interested
in new ideas and new technolgy and by and larege have graduated to spheres beyond the angel round of business financing.
They set their sites on financings at or above the $15 million dollar level which usualy means a good bit of maturity
for the issuer ( the company seeking capital) in terms of customers revenues and net earnings.
3) Regional investment banks
At this level is a group of regional investment banks-- U.S bancorp Piperjaffery ect. these regionals may act as placement
agents for early stage financing but again with prosperity, may have moved to a better neighborhood. They work with local
companies -they have funding minimums of 5million dollars more or less they understand the local markets they can be as picky
as the major leaguers
4) Boutiques- a typical boutique is a collection of experianced investment bankers who have left the major leaguers to
strike out on their own usually in a loose alliance with other indiviguals of the like persuassion. With promaonant exceptions
they like to be involved in advisory work for mergers and acquisitions work. They don't ordinarily maintain a true brokerage
functions and they don't write tickets and they're not members of the New York stock exchange.
5) The fifth tier: Boiler rooms and bucket shops.
At the next level is an amorphous group of firms that consist mainly of a retail sales force engaged largely in promoting
penny stocks--- public securities of issueers listed on the NASDAQ small cap market and OTC bulletin board and pink sheets.These
firms are far too shakey to be listed on a national exchange such as NYSE .Some of these firms are legitament and perform
a nessary market fuctions in maintaining some liquiditiy in public securities that the big guys don't deign to pay attention
to.Others though are what they call in the trade as bucket shops or boiler rooms. These brkers cold call customers and attempt
to push questioable securities on an unsuspecting public for no other reason then the commisions the trades will garner.
ON occasion, these firms attempt to place private equity, and many of them are not particularly
picky about the size of their offering. That can be good news for a legitament entrepreneur because, as they say all money
is green.And despitte questionable stock sales practices in the public markets sometimes they know where the appropriate buckets
are.
However astute professionals don't recomend doing business in this bracket.Even if you raise the capital there is no
telling what kind of a story the salesmen has told the investors and no investors can be better then a group of angry disappointed
ones.
They'll work for any company
They require no funding minimum
The only good news about them is that you can be sure they will take you on
The bad news is the same as the good news
The new tier-----Incubators
Recently, a new catagory has been added--- organizations have been styling themselfs as incubators
6) Incubators the term incubator includes a couple of possibilities
A) Phisical incubators are office and conferance facilities set up to house emerging growth
firms in a quasi - private, quasi-communal envirorment .A typical phisical incubator comprises an entire floor or floors of
an old loft building- split into cubicals occupied by early stage firms and provide shared conferance , reception, phone answering
service ,and cafiteria. Incubators are particularly specializing in information technology because the space usualy includes
access to broad band internet capability
B) Virtual incubators also serve a multitude of clients and provide an array of services , including
business consultation(They will help with a business model), technical work (They will help design a web site if thats part
of your model), recruiting, financial management and strategic advice.