Equity - or public equity in the form of stocks is issued by companies. Not only companies can borrow - and not only companies can borrow through securitised debt.
Saturday, May 31, 2008
Friday, May 30, 2008
16. Private Equity, IPO, Public Equity
Equity can either be private or public and these terms are often used in the press. In the transition from the former to the latter there is typically an IPO. Public equity is also known as stocks or shares.
Thursday, May 29, 2008
15. The Capital Structure of a Company
This video highlights what is spoken about when we talk about the capital structure of a company - effectively the structure of that company's financing, which is very tied to the right side of that company's balance sheet - for the book values, as well as the market values of the items on the right side of the balance sheet.
Wednesday, May 28, 2008
14. What is a Bond?
Bonds are pieces of debt of companies or governments and this brief video details further what a bond is.
Everyone should know what a stock and a bond are - this video gives a quick intro to that. What stocks and bonds are has a lot to do with how providers of capital interact with users of capital (through equity (which includes stocks for many large companies)) and debt (which includes bonds for many large users of capital).