Goldman Sachs (NYSE: GS ) has filed paperwork to found a business development company, which will be called Goldman Sachs Liberty Harbor Capital. Companies in this space such as Prospect Capital (NASDAQ: PSEC ) and American Capital (NASDAQ: ACAS ) are known for high dividend yields, though American Capital's dividend was suspended during the financial crisis. This leaves investors asking, should I buy Goldman Sachs Liberty Harbor Capital the moment I have a chance? In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson discuss what a business development company is, why it could be appealing, and whether or not they're buying.
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