Dashboard
Review Topics
Drills
Practice Exams
Flashcards
Vocabulary
Work on your penmanship. The scorers never appreciated my buffalo scratch.

Bondage, Anyone? Raising Debt, Not Cain

Dashboard > Investment Vehicle Characteristics, Part II > Bondage, Anyone? Raising Debt, Not Cain

Bondage, Anyone? Raising Debt, Not Cain

With everyone still digesting details from the equity portion of the IPO, the focus turns to the debt piece. The bankers delineate the choices.

Facebook can raise debt in the form of preferred stock, which isn't really debt. Technically it's equity, but it pays a fixed dividend, which is similar to a fixed coupon on a bond. However, it would have to come with conversion rights. That is, it could be converted into common stock at a given price over a given period of time, so it's viewed as...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

$14.99
Next: Straight vs. Cumulative Preferred  
  Prev: Trading Through the IPO