EIN (Employer’s Identification Number, TIN, Tax Identification Number)
A unique identification number assigned to a business entity by the Internal Revenue Service (IRS) for tax reporting purposes. Commonly referred to as a Federal Tax Identification Number, the EIN is used to report taxes and identify the entity for various legal and financial activities. Banks typically require an EIN to open a bank account […]
Equity (Common Stock or Preferred Stock, Shares)
Equity refers to ownership in a company, typically represented by stock, that entitles the shareholder to a proportionate share of the company’s assets and earnings. The two most common types of equity are Common Stock and Preferred Stock. Preferred Stock is a class of ownership with a higher claim on the company’s assets and earnings […]
ERA (Exempt Reporting Adviser)
An Exempt Reporting Advisor is an investment adviser that is not required to register (like a Registered Investment Advisor) with the Securities and Exchange Commission (SEC) or state regulators, provided it meets specific qualifications, pays applicable fees, and reports public information through the Investment Adviser Registration Depository (IARD). Large advisers, with $100 million or more […]
Estimated Closing Date
The projected date by which the SPV Organizer anticipates completing the capital raise to reach the target fundraise amount. This date is significant for all parties involved, as it indicates when funds will be available for allocation to the target asset or project. The estimated closing date helps create a timeline for investors to finalize […]
ETF
A marketable security that tracks the performance of an index, commodity, bonds, or a basket of assets. ETFs are traded on stock exchanges and offer investors exposure to a diversified portfolio, typically with lower fees compared to mutual funds.
Exempt Offering
A securities transaction in which an SPV is not required to register with regulatory bodies, such as the Securities and Exchange Commission (SEC). Exempt offerings typically involve private placements or Regulation D offerings, where securities are sold privately to accredited investors rather than being offered to the general public. SPVs are mainly structured as exempt […]
Expense Reserve
An Expense Reserve is a separate account, typically established by the SPV Organizer in the Organizer’s name, used to collect funds from investors specifically for covering the SPV’s expenses. Investors are required to deposit their investment funds into the SPV’s main bank account and then contribute additional funds into the expense reserve account. This approach […]