User:Mooseinthehat

Capital Broker
One who deals with selling of stock for a firm other than themselves. Like other [brokers]http://en.wikipedia.org/wiki/Broker, they mediate between the buyer (usually independent persons or investment organizations) and the seller (a business); unlike other brokers, they deal specifically with acquiring capital (money). Though they are mainly dealing with business stocks, they are not [stock brokers]http://en.wikipedia.org/wiki/Stock_broker - their main interest is to raise as much capital as possible for the business for which they are implementing the brokerage. Capital brokers usually have access to private and organizational investors that the banks organizers and directors may not have. Also, bank developers are often too busy or don't know how to ask their friends and associates for money, which is another reason why the broker may be there. The end goal is to acquire an allotted amount of capital for the business.

An example is would be when a community bank wants to open; let's say that they need $20 million by a certain date from when they initially file their charter in order to get FDA approval. Banks usually have a group of organizers that put up money for the initial investment and a board of directors (who usually have bought the majority of the stock). Say that, in this example, the bank was only able to raise $15 million - they would then need a capital broker, who would just try to find investors that may interested enough in the business to buy stock. Basically a capital broker is the intermediary between those who are selling stock and those who may be willing to buy it.