Learn ECF and Finance Definitions
Equity crowdfunding (ECF) platform definitions quity crowdfunding (ECF) platform
definitions
| Terms | Definitions |
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ECF operator |
a Recognized Market Operator (RMO) who operates an equity crowdfunding platform |
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ECF platform |
an equity crowdfunding platform registered by the Securities Commission (SC) |
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Issuer |
a person who is hosted on an ECF platform to offer its shares on the ECF platform |
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Retail Investor |
Read here |
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Angel Investor |
Read here |
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Sophisticated Investor |
Read here |
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Trust Account |
A trust account is a financial account managed by a trustee on behalf of others. Trustee List |
| LLP (Limited Liability Partnership) | LLP stands for Limited Liability Partnership, used for equity structure arrangements. Read more |
| Partnership Agreement | Means the partnership agreement to be entered into between the Investors, the LLP, the Issuer and the founder of the Issuer upon the successful completion of the equity crowdfunding campaign hosted on the Platform. |
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Latest practicable date |
means a date whereby the information disclosed should remain relevant and current as at the date of issue of the prospectus |
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Microfund |
means an entity that meets the conditions set out below: (a) is registered with the SC as a venture capital company; (b) has a specified investment objective; and (c) only raises funds from sophisticated investors and angel investors. |
Finance and Shares Definitions
| Terms | Definitions |
|
Shares |
A share represents a unit of ownership in a company or financial asset. Holding shares in a company makes you a shareholder, giving you certain rights and benefits based on the type and number of shares you own. |
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Ordinary Shares |
Entitles the shareholder to voting rights at general meetings, variable dividends and potential capital appreciation. In the event of liquidation, ordinary shares have the lowest priority among creditors. |
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Convertible Preferred Share (CPS) |
Provide fixed dividends and generally do not confer the shareholder voting rights. They offer the potential for conversion into ordinary shares and have a higher priority in liquidation compared to ordinary shares |
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Redeemable Convertible Preference Shares (RCPS)
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Combine features of both convertible preferred shares and redeemable preference shares, offering fixed dividends, conversion to common shares, redeemable by the issuing company, and higher liquidation priority than common shares. |
| Redeemable Preference Shares (RPS)
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Provide fixed dividends and generally do not confer the shareholder voting rights. They are redeemable by the issuing company and have a higher priority in liquidation compared to ordinary shares. |
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Dividends |
Means the distribution of a portion of a company's profits to its shareholders. Dividends are usually paid in cash but can also be issued as additional shares or other property. |
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Pre-Money Valuation |
Refers to the assessed value of a company as determined by a third-party valuer, before any external investment (funds raised through an ECF campaign) is factored in. |
