11 definitions by Sorry, the good guys lost
(US LAW) tax-exempt nonprofit as defined under Treasury Code section 503(c)(4). Very similar to a 501(c)(3), but while a 501(c)(3) is more completely exempt from taxes, a 501(c)(4) has more leeway in what sorts of political activities it may engage in.
For example, a 501(c)(4) organization may explicitly endorse a ballot position or candidate, whereas a 501(c)(3) may not.
For example, a 501(c)(4) organization may explicitly endorse a ballot position or candidate, whereas a 501(c)(3) may not.
There are many examples of 501(c)(3) organizations paired with 501(c)(4) organizations. This arrangement is known as the "Sibling Option" and is used by the Koch Family Foundations for funding Tea Bag political associations.
by Sorry, the good guys lost September 10, 2010
(FINANCE) leveraged buy-out; when a takeover artist like Kohlberg Kravis Roberts & Co (KKR) arranges to borrow huge amounts of money at high interest, buy a controlling interest in a corporation, and then replace the management so its more profitable. The new profits then pay off the cost of buying the company.
Usually a takeover artist requires a vehicle corporation to carry out an LBO. For example, T. Boone Pickens used Mesa Petroleum against Union Oil in the 1980's.
by Sorry, the good guys lost September 2, 2010
(US LAW) nonprofit corporation; legal status permitted to certain types of organizations under Treasury Regulations section 501(c)(3) that exempts it from taxation.
The 501(c)(3) is quite easy to organize, especially if one wants to funnel money from donors to some form of activism. It was first made available in 1934 but has become extremely common since 1986 because successive rulings greatly loosened restrictions on electioneering for 501(c)(3) entities.
Often 501(c)(3) entities engaged in politics are affiliated with an almost-identical 501(c)(4) entity, which has EVEN WEAKER limitations on electioneering.
The 501(c)(3) is quite easy to organize, especially if one wants to funnel money from donors to some form of activism. It was first made available in 1934 but has become extremely common since 1986 because successive rulings greatly loosened restrictions on electioneering for 501(c)(3) entities.
Often 501(c)(3) entities engaged in politics are affiliated with an almost-identical 501(c)(4) entity, which has EVEN WEAKER limitations on electioneering.
The 501(c)(3) clause in the IRS code is practically an invitation by the government to launder corporate profits into lobbying.
by Sorry, the good guys lost September 10, 2010
A type of investment fund with very high fees for investors and a focus on complex financial derivatives. Hedge funds charge around 20% of returns (sometimes a lot more) plus a flat fee of typically 2%.
Originally hedge funds were based on the concept of risk hedging; high-yield investments are always riskier than low-yield ones, so a fund manager could presumably put all the money in one instrument with enormous risk and hope for the best. That is, to put it bluntly, insane. So the manager uses a strategy of hedging risk as cheaply as possible, such as a very elaborate combination of derivatives that rise in value if the main asset declines in value.
Hedge funds are organized to be very exclusive, requiring a very long commitment and limited membership. The managers are much more daring and will take much more aggressive risks than mutual funds.
Originally hedge funds were based on the concept of risk hedging; high-yield investments are always riskier than low-yield ones, so a fund manager could presumably put all the money in one instrument with enormous risk and hope for the best. That is, to put it bluntly, insane. So the manager uses a strategy of hedging risk as cheaply as possible, such as a very elaborate combination of derivatives that rise in value if the main asset declines in value.
Hedge funds are organized to be very exclusive, requiring a very long commitment and limited membership. The managers are much more daring and will take much more aggressive risks than mutual funds.
The largest hedge fund company is JP MorganChase.
During the first decade of the '00's, hedge funds outperformed most other asset classes. But when they melt down, like LTCM in 1997, it can be a huge event.
During the first decade of the '00's, hedge funds outperformed most other asset classes. But when they melt down, like LTCM in 1997, it can be a huge event.
by Sorry, the good guys lost September 4, 2010