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What Is the Difference Between Angel Investors and VCs? Why

question 18

Essay

What is the difference between angel investors and VCs? Why would an entrepreneur prefer one over the other? What would be the logical type of investor for the venture you are working on for this class?


Definitions:

Federal Reserve

The central bank of the United States, responsible for monetary policy, regulation of financial institutions, and ensuring financial system stability.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Annual Dividend

The total amount of dividend payments declared by a company in one year, distributed to shareholders from its earnings.

Stock Price

The cost of purchasing a share of a company on the stock market.

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