Overview on Equity Securities and Valuation

Investors buy all of a firm’s equity using debt financing

Do not have the right to dividend payments that were previously denied

Firms issue equity shares to public as a primary source of long-term financing, equity shares are not legally redeemable

bank acts as a custodian and manages dividends, stock splits, and other events

Capital provided to firms early in their life cycles to fund their development and growth

Have the right to dividend payments that were previously denied

Usually issued to institutional investors via private placements

Forms of FDI which direct investment, an existing company in one country adds an unrelated business operation abroad

Bearer to dividends equals to the usually stated rate at which preferred dividends are paid to preferred shareholders

Provide shareholders first priority or preferred privileges

global registered shares is an ETF that is a collection of DRs. ETF shares trade in markets just like common stocks

Type of stock that tales precedence over common stock in a company

are issued outside the United States and the issuer’s home country

Are preferred shares with a conversion option

ADRs allow American investors to buy stock in foreign companies that would otherwise be unavailable to them

Given to business owners and other investors as proof of their investment

Buyer’s are the firm’s current management

a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange

global registered share is a security that is issued in US, but it is registered in single markets around the world

Classes of shares are limited to certain classes only