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Corporate Financing Using Stock. Statistics & Risk Management. Privately Held Corporations. Stock ownership is with Owner/Operator Family Partners Limited Ability to Raise Funds. Publicly Help Corporations. Preferred Stock Dividends (Normal) First to receive funds after bond holders
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Corporate Financing Using Stock Statistics & Risk Management
Privately Held Corporations • Stock ownership is with • Owner/Operator • Family • Partners • Limited Ability to Raise Funds.
Publicly Help Corporations • Preferred Stock • Dividends (Normal) • First to receive funds after bond holders • Common Stock • Capital Gains • Dividends (sometimes)
Public Offerings IPO Initial Public Offerings SEO Secondary Public Offerings
Re-Investment Plans Instead of dividends a stock holder can be issued more shares each year based upon their existing holdings. Why can this be good for the company and the stock holder?
Stock Splitting If the market price of a share of stock is too high the company can split the stock. If you owned 100 shares you would then own 200 shares. Why can this be good for the company and the stock holder?
Stock Spin-off A company may want to divest itself from a part of its operations and give all of its stock holders new stocks in the newly created company. Why can this be good for the company and the stock holder?