Capmar Chapter 4 equity

It is a residual claim that represents ownership in a firm

It means ensuring that management acts in the owner's best interest and not solely on its behalf

What are the Types of Equity/Stock?

• Preferred Stock

• Common Stock

• Perpetuity Stock

• Perpetual Stock

A stock that has preferred or superior position during dividend decelerations and liquidation proceedings only

A stock that represents the final claim on a corporation's earnings and assets

It issued primarily to institutional investors via non-public offerings, such as private placements and doesn't have market determined quoted process, illiquid, and require negotiations between investors in order to be traded

What are the types of Private Equity Investments?

• Venture Capital

• Leveraged Buyouts

• Venture Buyouts

• Leveraged Capital

A type of private equity investment that provides "seed" or start-up capital and early-stage financing to firms in the early stages of development and requires additional capital for expansion

A type of private equity investment that occurs when a group of investors uses a large amount of debt to purchase all of the outstanding common shares of a publicly traded company

It refers to a transaction where the group of investors acquiring the company primarily comprises the company's existing management