Hybrid form of financing
Stock represents ownership in a company, but not all stock is created equal. A company might issue a number of classes of stock, each class…
Finance
Initial Public Offering (IPO)
Initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the…
Rights of Common Stockholders
Common Stock the type of stock that is present at every corporation. Shares of common stock provide evidence of ownership in a corporation. Holders of…
Procedure for selling new common stock
Companies whose shares trade on public stock exchanges get most of the attention from investors, but the vast majority of companies haven’t gone through the…
The Methods for Determining the Value of Convertible Debt
The financial accounting term valuing convertible debt refers to the process of determining the cost assigned to these securities at the time of issuance and…
Features of a Bond
A bond is a debt investment in which an investor loans money to an entity which borrows the funds for a defined period of time…
Characteristics of Convertible Bond
A convertible bond gives the holder the right to “convert” or exchange the per amount of the bond for common shares of the issuer at…
Advantages and Disadvantages of Financing with Debt
Let us have a look at advantages and disadvantages of Financing with Debt: Advantages Utilization of Resources — When a business use debt to finance…
Differentiate between Yield to Maturity and Yield to Call
Difference between Yield to Maturity and Yield to Call are: Yield to Maturity: Definition: YTM means the interest rate for which the present value of the…
Difference between Operating Lease and Financial Lease
Difference between operating and financial lease are: Operating Lease Definition: A lease in while all risks and rewards related to asset ownership remain with the lessor…
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