Question by Real Talk 101: What exactly does it mean to invest in a company?
I run an independent music production company out of my home. I was approached today by a very wealthy individual in the town I live in whom in which told me that they would like to invest in my project. I know it pretty much means that they want to throw some money into my business but Im not sure exactly where to put the money or what the process consists of. Can anyone explain to me what it means to invest and what to do with the money?
If out of curiosity you’d like to check out my music heres the site:
I’m in need of an answer, not websites please
Answer by Landon P
To invest in a company means that someone has purchased “shares” or interest in your company…
If the individual is wealthy, the he problems qualifies as an accredited investor, and can in fact invest your business with no registration requirements with the SEC or states securities office.
However, be very careful in the world of securities. Make sure he is in fact an accredited investors prior to accepting his investment, or your could be in federal trouble.
* This is not legal or financial advice. Anything said in this answer is purely my opinion, and only my opinion.
What do you think? Answer below!