Glossary

absorbed The condition of an initial public offering (IPO) that has been sold out.

accounts payable The money a company owes to its creditors, such as for raw materials, inventory, equipment, services, and taxes.

accounts receivable Money owed to a company by customers. If accounts receivable are increasing much more than sales, the company may be having problems collecting payments.

accredited investor A person who has a net worth of at least $1 million or has an annual income of $200,000 per year ($300,000 for married couples). These guidelines are set by federal regulations. It is typically accredited investors who put money into companies that have yet to go public. Because of the high income requirements, many individual investors ...

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