Equity vs Debt
Funds that are provided by the firm's owners that are repaid subject to the firm's preformance
What is Equity?
The individual units or ownership that an investor can purchase
What is shares?
These of preferred stock recieve dividends before those of common stock
What is shareholders?
Money that is provided by investors to startups that have the potential to reshape markets and grow very fast
what is venture capital?
The potential for financial loss
What is risk?
Debt causes strain on this
What is cash flows?
The percentage of a company's earnings that is paid to its shareholders as their share of the profits
What is a dividend?
Preferred stocks lack these compared to common stock
What is voting rights?
Increase capital without going into debt
What is an advantage of IPOs?
Promotes trust and credibility
What is ethics?
This is equal to about 70% of debt/liabilities in addition to 30% of equity
What is Assets?
The full name of ADRs
What is American Depository Receipts?
A type of preferred stock where any missed dividend payments accumulate and must be paid to preferred shareholders before any dividends can be paid to common shareholders
What is cumulative preferred stocks?
The failure rate of startups
What is 3 out of 4?
This is increased when the risk is increased
Are the first to get excess to assets when a company goes bankrupt
What is secured creditors?
Owned by an individual or a small group of investors
What is closely owned stock?
The number of classes a company can issue
What is no limit?
New shares are sold to existing stockholders
What is rights offering?
A way a company maintains ethics
what is emphasizing intergrety, objectify, competence, client interests
Blank interest is tax deductable
What is Debt?
Investors that are more suitable for common stock
What is long term group investors?
Conversion/convertable preferred stock
What is a type of preferred stock that allows shareholders to change preferred shares into a number of common shares of equal value
The process where financial institutions, like banks and insurance companies, assess and quantify the risk associated with a loan, insurance policy, or investment, ultimately determining if and on what terms they will offer it
What is underwriting?
The only way to describe life
Who is Beautiful?