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#BDC #InvestopediaCliffNotes #ThrowBackThursday - Seems like the news feed and content has increased in both diversity and quality dramatically over the last month. I'm excited to see what the growth trajectory will be through the end of 2021. If you are finding this community to be one that is helpful in your personal growth than be sure to share with your friends or loved ones who you think could also benefit from this. #SharingIsCaring The Breakdown: - Business Development Company (BDC) are a closed-end fund that identifies and invests in developing or distressed firms - Publicly traded and open to retail investors so this gives access to a market otherwise out of reach for most Where can I find BDCs on Public or elsewhere: - Honestly have no idea and will defer to anyone w/ >1 week of experience in this subject matter 😜 What should you know about BDCs before investing: - Most be domestic company and registered w/ SEC, invest >70% of assets in private or public US firms w/ market value <US$250 million - Must distribute >90% of profits to shareholders and due to RIC status don't pay corporate income tax on profits before distributing to shareholders What are the downsides of BDC: - Investments are high risk and sensitive to interest rate spikes and due to illiquid holdings can then lead to sudden and quick losses - Uses the double edge sword of leveraging to scale up profit marings which is great when things are good but problematic when value declines Resources: Investopedia, https://www.youtube.com/watch?v=IfTTTWRwhz0 P.S.: It has given me great joy to see everyone #BuildCommunity and people putting to good use their newly unlocked compose function! Just wanted to give a shout out to some newcomers: @jmag77 w/ dividend investing and @Mr_Kryptozzz w/ options trading. Crowdsourcing our #PublicNetwork to bring added value to everyone ... this is what I love about Public. #ThankYouPublic for creating a wonderful space. #FunFacts #TheMoreYouKnow #FeedYourBrain #GrowthNotGreed
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