2022: Creating a Lexicon of Future
V is for Vulture Capitalists
Vulture capitalists are investors that acquire distressed firms in the hopes of making them more profitable so as to ultimately sell them for a profit. Due to their aggressive investing nature, and the methods they use to make firms more profitable, vulture capitalists are often criticized.
Vulture capitalists receive a lot of criticism as they often go for firms that are in very poor shape, meaning these firms are unable to secure capital from banks or even venture capitalists as they are too risky an investment. Due to this, vulture capitalists are able to acquire the firms for prices that are often very low considering what they would have been if the company was not currently under pressure, or if other participants were bidding on it.
Once vulture capitalists acquire a firm, they often fire workers to reduce costs, in order to raise profitability for their own gain. Vulture capitalists are criticized for this, especially as the newly unemployed people can be said to put pressure on the political economy and general society through their need of unemployment benefits, which comes from company payroll taxes and other taxpayers. ~ Wikipedia
