Financier
A financier (/fɪnənˈsɪər/; French: [finɑ̃ˈsje]) is a person who makes their living from either facilitating or directly providing investments, typically involving large sums of money and usually involving private equity and venture capital, mergers and acquisitions, leveraged buyouts, corporate finance, investment banking, or large-scale asset management. The term is French, and derives from finance or payment.
A financier today can be someone who makes their living from investing in up-and-coming or established companies and businesses. A financier makes money through this process when his or her investment is paid back with interest,[1] from part of the company's equity awarded to them as specified by the business deal, or a financier can generate income through commission, performance, and management fees. A financier can also promote the success of a financed business by allowing the business to take advantage of the financier's reputation.[2] The more experienced and capable the financier is, the more the financier will be able to contribute to the success of the financed entity, and the greater reward the financier will reap.[3]
Uniform Computer Information Transactions Act[edit]
Under the Uniform Computer Information Transactions Act, promulgated in 2009, defines a financier as "a creditor or a lessor dealing with the licensee under a financial accommodation contract".[4] The Act goes on to state:
The financier may have any of several relationships to licensed computer information. In one the financier obtains rights as a licensee for purposes of transfer to the eventual licensee, which is the accommodated party. This is like a finance lease under Uniform Commercial Code Article 2A, but the focus is licensed computer information, rather than leased goods. A second kind of relationship arises where the party giving the accommodation does not obtain rights in the license as against the licensor, but obtains a contractual right to prevent the licensee's use of the information in the event of breach of the financial accommodation contract. The licensor in the underlying license is not a financier for purposes of this Act. A licensor may obtain a security interest under Article 9 and would, with respect to that interest, have the rights of a secured party under Article 9.[4]
Job prerequisites[edit]
Financier is a term used to describe someone who handles money. Certain financier avenues require degrees and licenses including venture capitalists, hedge fund managers, trust fund managers, accountants, stockbrokers, financial advisors, or even public treasurers. Personal investing on the other hand, has no requirements and is open to all by means of the stock market or by word of mouth requests for money. A financier "will be a specialized financial intermediary in the sense that it has experience in liquidating the type of firm it is lending to".[1]
Perceptions[edit]
Financiers have been mocked for their perceived tendency to generate wealth at the expense of others, and without engaging in tangible labor. For example, humorist George Helgesen Fitch wrote:
A FINANCIER is a man who can make two dollars grow for himself where one grew for some one else before.
The financier does not do this by earning the money. This would be too simple. Any one can earn money. He does it by ways which common people and governments are not supposed to be able to understand. If the financier had a dollar and needed two, he would not hide one dollar under a brick and earn another. He would use the dollar as first payment on a ten dollar bill and he would then bond the bill for a twenty dollar gold piece and would charge five dollars for doing this. Then he would sell an option on the twenty-dollar gold piece at seventeen dollars for one dollar to fortyfive people and would then dispose of a half interest in the entire transaction for $150; $2 down and the rest payable in short term notes.
This is the difference between a financier and the common mutt who would buy the business.
It is thus readily apparent that a financier is a very great man and should be treated with respect. Financiers have done this world a great deal of good by coaxing money out of stockings and old stoves and setting it to work. So long as the rest of the world keeps on getting up early and laboring all day to produce crops and things, financiers are wonderfully prosperous and play pool for an automobile a point after their day's business is over. But if the rest of the world ever stopped working for a few years, the financier would starve to death unless some one led him out into a field and showed him how to pull carrots.
This, however, does not prevent the financier from being wonderfully scornful of ordinary folks. Nothing makes one of these great men so mad as to be hauled up before a common old supreme court and asked impertinent questions about his business.
When a financier gets hold of a railroad, he does wonderful things with it, buying other railroads right and left and increasing its capital stock and bonded indebtedness beyond all belief. When the railroad fails later on, the financier lays it to government interference. It is too bad that the man who spends $11,000 a year on a $5,000 income and goes broke can't lay it to government interference and continue to be proud and haughty.[5]
See also[edit]
References[edit]
- ↑ 1.0 1.1 Xavier Freixas, Jean-Charles Rochet, Microeconomics of Banking (2008), p. 227.
- ↑ Hans Landström, Handbook of Research on Venture Capital (2007), p. 202.
- ↑ Edwin H. Neave, Modern Financial Systems: Theory and Applications (2009), p.8,
- ↑ 4.0 4.1 Uniform Computer Information Transactions Act (2009), §102(a)(31).
- ↑ George Fitch, Vest Pocket Essays (1916), p. 123.
Further reading[edit]
- Josephson, Matthew, Ravindra Kumar Barnwal From Jahrkhand, The Money Lords; the great finance capitalists, 1925–1950, New York, Weybright and Talley, 1972.
This article "Financier" is from Wikipedia. The list of its authors can be seen in its historical. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.
