To implement the DTN, I use 4 plugins: Daily Notes, Templates, dataview and QuickAdd. There are lots of guides on using daily notes and Templates, so I will assume you have that up and running, and will focus mostly on how I build each section within the DTN. Although all sections are important, the Daily Profit/Loss Table is really key for me.
Section 1) Review of Trading Plan - In this section I have a link to a note that is my Trading Plan. It is first in the list, because I consider it imperative to review this document every morning and reinforce my rules.
I have used several commercial tools such as Trading Diary Pro and others, and I always come back to a private note-taking system. Edgewonk was one of the better ones in my opinion, but it does not handle options.
Importantly, any guarantee that your principal will be protected is only as good as the financial strength of the company making that promise. You could lose all of your investment if the issuer of your note is unable to pay its obligations or goes bankrupt. In other words, any principal guarantee is subject to the creditworthiness of the guarantor, which is generally the securities firm that structures and issues the note. In the event the issuer goes bankrupt, investors who hold these notes are typically considered unsecured creditors and might recover little, if any, of their original investment.
In general, the terms and structures of these notes can be more complex than traditional bonds, making them more difficult for investors to evaluate. And, as with structured products generally, structured notes with principal protection typically have costs that can be relatively high and sometimes difficult to determine or understand.
Structured products, including notes with principal protection, are primarily designed to be buy-and-hold investments. While some notes have relatively short maturities, measured in months, others might extend out for 10 years or more. Structured notes with principal protection tend to have longer maturities, which can be influenced by the market environment (for example, the level of interest rates).
Stocks: Real-time U.S. stock quotes reflect trades reported through Nasdaq only; comprehensive quotes and volume reflect trading in all markets and are delayed at least 15 minutes. International stock quotes are delayed as per exchange requirements. Fundamental company data and analyst estimates provided by FactSet. Copyright 2019 FactSet Research Systems Inc. All rights reserved. Source: FactSet
But basically I make a new notebook for my daily bullet journal stuff each week, and I'd prefer that the notebooks display the first page in the overview page instead of just showing the last page I edited
"Prevent un-authorized transactions in your account --> Update your mobile numbers/email IDs with your stock brokers and depository participants. Receive information of your transactions directly from Exchange or Depository on your mobile/email at the end of the day. Issued in the interest of investors"
This is with reference to communication received from SEBI/Exchanges stating that some fraudster entities have been operating throughout India and sending bulk messages to the clients trading on the recognized stock exchanges on the pretext of providing investment tips and luring with hefty profits, all clients are requested not to get carried away by luring advertisements, rumours, hot tips, explicit/ implicit promise of returns, etc.
Suppose an investor injects a $100,000 convertible note in a startup with a 10% discount rate. Subsequently, the company gets a $1 million valuation, with 1 million shares having a per-share value of $1. In the absence of a discount, the $100,000 convertible note would convert to 100,000 shares. However, with the 10% discount rate, the note is converted into 111,111 shares because the share price is reduced to $0.9 at conversion.
Convertible notes are originally structured as debt investments, but have a provision that allows the principal plus accrued interest to convert into an equity investment at a later date. This means they are essentially a hybrid of debt and equity.
A valuation cap is a hard cap on the conversion price for note holders regardless of the price per share on the next round of equity financing. Any automatic conversions that occur at the maturity date (if no qualified financing have occurred) are at some price per share that is lower than the cap.
Convertible notes are debt instruments that include terms like a maturity date, an interest rate, etc., but that will convert into equity if a future equity round is raised. The conversion typically occurs at a discount to the price per share of the future round.
In this article, Toptal Finance Expert Jeffrey Briggs outlines the basics of convertible note structures, and runs through the pros and cons of using them to raise money for new entrepreneurial ventures.
The vast majority of high-growth startup companies rely on some form of outside financings such as funding from angel funds, traditional venture capital, high net worth investors, or friends and family. While identifying a viable market and making a great pitch are crucial to raising investment funding, there is a seemingly endless array of other considerations that need to be addressed before those funds show up in your bank account and you are off and running to create the next big thing. In this article, I am going to look at one of those major decisions that most entrepreneurs and companies must face when they are raising investment funds and that is the pros and cons of using convertible notes to finance your company.
Most equity investments in venture capital-backed companies are structured as preferred stock, which is different than simply $X for Y% of the company. When the investment is structured as preferred stock, this typically comes with terms such as a liquidation preference, a preferred dividend, and approval rights over certain company decisions. In most types of preferred stock, the liquidation preference means that in a liquidity event, the investors get the value of their investment back, plus any preferred dividends, prior to the rest of the funds being distributed amongst the % ownership. The preferred dividends are generally not paid in cash, but accrued and paid out when there is a liquidity event. As common stock is generally owned by founders and employees of the company, this means that all the investors must be paid back plus a guaranteed return (the preferred dividends) prior to any funds being distributed to the common stock. In addition to regular voting rights, the preferred stockholders also often have additional approval rights over items such as the terms of subsequent rounds of financing and acquisition opportunities.
What is a convertible note? In short, a convertible note is originally structured as a debt investment but has a provision that allows the principal plus accrued interest to convert into an equity investment at a later date. This allows the original investment to get done more quickly with lower legal fees for the company at the time, but ultimately gives the investors the economic exposure of an equity investment.
Interest: While the convertible note is in place, the invested funds earn a rate of interest like any other debt investment. The interest in not typically paid in cash, but accrued, which means the value owed to the investor builds up over time.
Maturity Date: Convertible notes carry a maturity date, at which the notes are due and payable to the investors if they have not already converted to equity. Some convertible notes have an automatic conversion at maturity.
Conversion Provisions: The primary purpose of a convertible note is that it will convert into equity at some point in the future. The most common method of conversion occurs when a subsequent equity investment exceeds a certain threshold. This is called a qualified financing. At this time, the original principal plus any accrued interest converts into shares of whatever new equity was just sold. In addition to getting the benefit of the accrued interest, which buys the convertible note holders more shares than they would have if they had waited and invested the same amount of money in the equity round of financing, they often get several additional perks in exchange for investing earlier. In the event that a qualified financing does not occur before the maturity date, some convertible notes also include a provision in which the notes automatically convert to equity, at a set valuation, on the maturity date.
EXAMPLE: An investor purchases $25,000 of convertible notes that carry an 8% interest rate and a 20% conversion discount. In a qualified financing that occurs 18 months after the convertible notes are sold, the company sells equity at $3.50 per share. At this point, the notes will have accrued $3,000 in interest, making the amount owed to the note investor $28,000. With the 20% discount, the conversion price for the notes is $2.80 per share, and the investor receives 10,000 shares of the new stock. Had the investor waited to purchase the stock at the time of the qualified financing, they would have received 7,143 shares of stock, so it is clear there is a big reward to the convertible note investor for taking the risk of investing earlier
Valuation Cap: In addition to the conversion discount, convertible notes also typically have a valuation cap, which is a hard cap on the conversion price for noteholders regardless of the price per share on the next round of equity financing. Typically, any automatic conversions that occur at the maturity date (if no qualified financing has occurred) are at some price per share that is lower than the valuation cap.
f5d0e4f075