 Texas Distributors obtained capital through a program called the General Electric Equity Finance Plan by which the manufacturer offered to finance the growth of its distributors, in return for equity in Texas Distributors.The manufacturer presented Texas Distributors with two hundred thousand dollars in working capital, half of which was a loan to TD, and the other half of which was one hundred thousand dollars in Texas Distributors preferred stock sold to GE, with TD paying the dividends on that stock until they could accumulate enough money to buy it back.After terms had been agreed upon but before the papers were signed, Lowe showed the plan to his employees.