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Vulture capitalists are investors that acquire distressed firms in the hopes of making them more profitable and selling them for a profit. Due to how vulture capitalist make firms more profitable, and their aggressive investing nature, vulture capitalists are often criticized. ==Venture vs. vulture capitalist== A venture capitalist is an investor who provides funding for start-ups, early stage firms and companies with growth potential.〔 These types of firms seek out venture capitalists, as they are too small or too new to have credit profiles, making them ineligible for bank loans and other forms of raising capital. Although risky, venture capitalists invest in firms as there are very lucrative returns on their investments when the company they are investing in is successful.〔 Furthermore, venture capitalists will often invest in a range of firms rather than just one or two, in order to mitigate risks if the investments are unsuccessful. On the other hand, vulture capitalists are a type of venture capitalist, which provide a final attempt at gaining funding.〔 Whereas venture capitalists seek firms with growth potential,〔 vulture capitalists seek firms where costs can be cut in order to increase profits. Most often, these firms are distressed and on the brink of bankruptcy.〔 Due to this reason, vulture capitalists are able to buy these firms for very low prices.〔 Once the firm is acquired, vulture capitalists cut-down costs wherever possible, which often means firing workers and cutting benefits. With reduced costs, the firm becomes more profitable, raising share price, giving investors profit. Lastly, the vulture capitalists sell any equity they own, allowing for more profit to be made. 抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)』 ■ウィキペディアで「Vulture capitalist」の詳細全文を読む スポンサード リンク
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