Classified stock refers to a company's common stock that is divided into two or more classes, typically with varying voting rights and privileges. This approach is often used to maintain control within a specific group, such as management or the founders, while raising equity capital from the broader market.
Financial Capital Maintenance is an accounting concept that stipulates a company must generate enough revenue to cover both operational costs and maintain its equity capital intact over a set period.
The Fixed-Asset to Equity-Capital Ratio is a financial metric used to assess a business's ability to satisfy long-term debt by comparing the value of its fixed assets to its equity capital.
A public offering refers to the process where securities are offered for sale to the general public, typically through a stock exchange. This mechanism allows companies to raise equity capital from a broad investor base.
