Equity Instrument Features

What equity is: the features and types of equity instruments, common and preference shares, and how publicly listed and private equity differ.

1. 1. Equity versus debt, why companies issue shares, and equity in global marketsEquity is a residual ownership claim with no promised payments, which is why it carries more risk than debt, has historically earned more, and gives companies flexible capital to grow.Free11 min
2. 2. Equity instruments: shareholder rights, the residual claim and equity cash flowsA share is a standardised, transferable slice of ownership that bundles economic and voting rights, lasts indefinitely, is paid only from what is left after every other stakeholder, and returns cash through discretionary distributions and an eventual sale.13 min
3. 3. Preference shares: cumulative, participating and convertiblePreference shares sit between debt and common equity: a fixed, higher dividend and priority over common shareholders, but no promise and usually no vote.Video · 5 min13 min
4. 4. Preference share contingencies: upside, downside, and how preference sits between debt and commonIssuers sweeten preference shares with contingent features: some give investors upside, some protect their downside, some favour the issuer, and convertibility lets young companies raise money cheaply without giving up control today.11 min
5. 5. Publicly listed versus private companies: why list, who stays private, and how the two differPrivate companies vastly outnumber listed ones, but listed companies are worth far more; listing buys liquidity and capital at the price of listing requirements, disclosure and scrutiny, which is why many firms, even large ones, stay private.12 min
6. 6. Private versus public equity: venture capital, buyouts and PIPEsPrivate equity trades away liquidity, price discovery and disclosure in exchange for a long-term focus and lower public-company costs; public equity offers deep capital, liquidity and scrutiny.11 min
7. 7. Private equity across the company life cycle: venture, growth, buyout, special situations and PIPE dilutionPrivate equity is used at every stage of a company's life, from venture capital for start-ups to buyouts of mature firms and special situations in decline, and a PIPE raises equity fast at a discount that dilutes existing shareholders.12 min