Dashboard
Review Topics
Drills
Practice Exams
Flashcards
Vocabulary
If you need special buffalo accommodations, contact your testing center. They're pretty good with things like that.

Taking Stock of the Situation with Preferred Stock

Dashboard > Chapter 4: Raising Debt - Securities > Taking Stock of the Situation with Preferred Stock

Taking Stock of the Situation with Preferred Stock

Bondage, Anyone? Raising Debt, Not Cain

With everyone uneasily comfortable with the equity portion of the IPO, the focus turns to the debt piece. The bankers delineate the choices:

The Sauce Company can raise debt in the form of preferred stock (which isn't really debt—technically, it is equity—but it pays a fixed dividend, which is similar to a fixed coupon on a bond), but it would have to come with conversion rights. Hal. E. Lujah! That is, it could be converted into common stock at a giv...

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

$24.68
Next: Bonds and Bondage Part 1: Basics  
  Prev: Grand Finale of the Initial Offering – IPO Structure