Understand the various means used by companies to raise finance including shares, debentures, loans, options, and warrants, and the important distinctions and regulations that govern them.
The dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock; announced when the convertible security is initially issued.
A capital reserve created to ensure that funds are available for the redemption of debentures at maturity, limiting profits available for distribution but not providing actual redemption funds directly.
Fixed-interest securities provide defined interest payments and are considered lower-risk investments. Examples include gilt-edged securities, bonds, preference shares, and debentures.
Gearing refers to the relationship between funds provided to a company by ordinary shareholders and long-term funds with a fixed interest charge such as debentures and preference shares. High gearing implies higher fixed charges on debt, impacting investment risk and returns.
Loan stock is a type of fixed-income security that represents borrowed funds, usually in the form of bonds or debentures, which companies issue to raise capital on which interest is paid until the maturity or redemption date.
Notes to the accounts, also known as notes to financial statements, provide detailed information and explanations that support and complement a company's financial statements. These notes help users understand and interpret the financial data and the company's overall performance and financial health.
Learn about the 'Offer by Prospectus', a method of offering new shares or debentures to the public, including requirements, examples, FAQs, related terms, and further resources.
A document that provides detailed information about a new issue of shares or debentures, inviting the public to invest. The prospectus must comply with regulatory requirements and be filed with the appropriate authority.
Redemption refers to the repayment of shares, stocks, debentures, or bonds as specified at the time of issue, often including a fixed redemption date and amount.
A list detailing individuals or entities holding debentures in a UK company, managed in accordance with specific regulations and available for public and stakeholder inspection.
A statutory book where companies must document the interests of its directors in shares and debentures, accessible during the annual general meeting.
A security that has claim prior to a junior obligation and equity on a corporation's assets and earnings. Senior securities are repaid before junior securities in the event of liquidation. Debt, including notes, bonds, and debentures, is senior to stock; first mortgage bonds are senior to second mortgage bonds; and all mortgage bonds are senior to debentures, which are unsecured.
A share premium account records the amount received by a company over and above the par value of its shares. Such balances are used for specific purposes under regulatory stipulations.
Voting shares are shares in a company that give the shareholder the right to vote at the company's general and extraordinary meetings, typically associated with ordinary shares.
