Investment Vehicle

  

Categories: Investing

No, this is not about the Tesla IPO.

Rather, an investment vehicle is a form in which investment cash is put to work. One form might be a limited partnership set up among 3 familiies to buy dilapidated old commercial warehouses, fix them up, then rent them out and make bank. Another investment vehicle might be a brokerage account at Schwab. Another might comprise majority equity ownership in a company whose stock is then used to make acquisitions (no tax for the sellers until they sell the stock).

Lots of choices in vehicles. None of these type are electrically powered, however.

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Finance: What is a partnership?23 Views

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finance a la shmoop. what is a partnership? a marriage. joint ownership

00:08

of a bar. when two dudes put up half the dough each to share 50/50 in a time [two different people offer money for keys]

00:14

machine. well a partnership is just the merging

00:16

of two individuals in doing a given business deal or setting up a business

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structure. if both are owners then both are liable for you know bad things

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should they happen. partnerships carry a lot of financial danger if one partner

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goes off the rails and decides to commit fraud in the name of the company or that

00:35

evil partner enters into a stupid company bankrupting contract, well then [bad contract sold to unsuspecting victim]

00:40

both parties pay for it. the innocent partner pays just as much in the form of

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whatever financial damages befall the partnership as the evil one, and

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partnership liabilities include personal assets if the partnership is structured

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like a general partnership with limited partners having no personal liability so [ liability structures defined]

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for all the good that a partnership can have it can get bad and ugly so you got

01:06

to enter partnerships carefully. spend lots of dough on lawyers before you set

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it up so you don't have to after. [money exchanged for partnership contract ]

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