Investor question

**aa2202** · 11-23-2009 10:41 PM

If an investor invests in your business, will he take a monthly profit or will he just be compensated when he sells his share of the business? Say he owns 20% of the business, does that mean he will get 20% of my net profits? Thanks!

**Encrypted** · 11-23-2009 10:45 PM

Originally Posted by aa2202

If an investor invests in your business, will he take a monthly profit or will he just be compensated when he sells his share of the business? Say he owns 20% of the business, does that mean he will get 20% of my net profits? Thanks!

It depends on the original agreement. The investor could get both 20% of profit and 20% of final sale.