Professional investors, if brought on for a second round of funding, will invest with preferred terms that will give them priority and special treatment over your initial investors.

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In terms preferred by economists, a situation defined by a principal-agent problem (such as you hiring a doctor or car mechanic who gets to both define your problem and figure out what to charge you for fixing it) was replaced by a much simpler employment relationship: would-be hustlers found themselves being turned into professional, generalist managers.

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Trust preferred securities are an ingenious way for companies to raise funds under more favorable tax terms.

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Terms call for Global Crossing holders to get 16 shares of Level 3 for every Global Crossing common or preferred share held at closing.

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