fwd: excellent definition...


Have you heard the definition of Enron Venture Capitalism?

You have two cows.  You sell three of them to your publicly listed
company,
using letters of credit opened by your brother-in-law at the bank, then
execute a debt/equity swap with an associated general offer so that you
get
all four cows back, with a tax exemption for five cows.

The milk rights of the six cows are transferred via an intermediary to a

Cayman Island company secretly owned by the majority shareholder who
sells
the rights to all seven cows back to your listed company.  The annual
report
says the company owns eight cows, with an option on one more.  Sell one
cow
to buy the new president of the United States, leaving you with nine
cows.
No balance sheet provided with the release.

The public buys your bull.

(With thanks to Aziz Choudry.)