Troubled Asset
Categories: Managed Funds
Like a bridge over troubled asset... Yes, a fine song.
Families seem to have these all the time. Yes, that red-haired step-child, the goth kid who cuts...everything, that famous graduate of the local high school (who was famous for having stolen $20,000 worth of lab equipment). All troubled assets.
Well, companies have them as well. Even the vaunted Google (Alphabet, as they semi-cleverly renamed themselves) has had troubled assets. They purchased a robotics company in Boston, and didn't click with the founders. The business under the ownership of Alphabet flailed and sputtered and nearly died, until they sold that business back to the founders and other investors, and it reignited growth.
So troubled assets don't always remain troubled. Sometimes, it's just the environment or the flavoring of the meat on the spit that makes them palpable.
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Finance: What is a Residual Claim To Ass...2 Views
Finance a la shmoop what is a residual claim to assets? alright people here's an
investment and here's an investment gone bad well here's the result and you have [Cash burning]
a claim to the crumbs of dollar bills here the investment in hair for days.com
didn't go so well instead of regrowing hair as it promised
it actually made hair disappear in you know other places so the investors eight
million bucks is mostly gone Microsoft is buying the company for a
scrap price of five million since you were the preferred stock investor and
there was no debt junior or senior or otherwise no IRS bills owed no vendor
bills owed just the preferred IEU well you have this residual claim to the you know
financial residue and the eight million bucks you invested went to Jenny Craig [Man with briefcase of 8 million dollars appears]
dieted down to only five million bucks which now come your way via your
residual claim to assets fingers crossed your next investment goes a bit better
but hopefully this one will put a little hair on your chest it happens [Man with hairy chest appears]