To back the retail presence across three cities, the company plans to increase its production capacity and hire more resources. Whenever a company plans such expenditure to improve the overall business, the expenditure is called ‘Capital Expenditure’ or simply ‘CAPEX’. (View Highlight)
Private Equity (PE) investor comes into the picture. Think about the PE as a big brother of a VC. Here are a few differences between a PE and VC –
VCs tend to cut smaller cheques, while PE typically invests large amounts.
VC invests in early-stage businesses and takes a much higher risk than PE. PEs invest at a mature stage and take on lesser risk compared to a VC
PEs, upon investment, also take up a board seat in the company and oversee the company’s functioning. (View Highlight)
Face value is simply a denominator to indicate how much one share is originally worth. Face value is also called the notional value of a share. (View Highlight)
The money the company spends on business expansion is called capital expenditure or CAPEX (View Highlight)
