8How to have Fun and not Lose your Shirt
Summary—This and the next chapter represent the core of the book in terms of offering advice to prospective investors in the film industry. It discusses crowdfunding as a viable means of raising capital and sets forth what an investor should look for in any information memorandum or prospectus. It raises some key accounting issues to keep in mind and discusses various strategies to minimize tax obligations—focusing on non–United States investors. Finally, it highlights the risks and rewards associated with investing in film companies as opposed to single pictures or slate of films—highlighting two historically prominent independent production companies, The Cannon Group and Carolco Pictures.
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