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A SPECIAL MEDICAL-EXECUTIVE-POST GUEST PRESENTATION
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What Is a Special Purpose Vehicle (SPV)?
A special purpose vehicle is a subsidiary created by a parent company to isolate financial risk. It’s also called a special purpose entity (SPE). Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt. A special purpose vehicle is sometimes referred to as a bankruptcy-remote entity for this reason.
These vehicles can become a financially devastating way to hide company debt if accounting loopholes are exploited, as seen in the 2001 Enron scandal.
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Filed under: "Ask-an-Advisor", Accounting, Experts Invited, finance, Financial Planning, Funding Basics, Glossary Terms, iMBA, Inc., Investing, Portfolio Management | Tagged: bankruptcy, debt, Enron, investors, pitching angels, SPE, special purpose entity, special purpose vehicle, SPV, VC, venture capitalists | Leave a comment »
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