Corporate Finance

Working Capital
Growth Capital
Recapitalization
Refinancing
Debt Financing
Equity Financing

Equity Financing

Public Equity		Private Equity
Initial Public Offering Secondary Offering Rights Offering	Common Stock Preferred Stock Convertible Preferred Stock Private Investment in Public Equities (PIPEs)

Preferred Stock
Preferred stock is a class of ownership in a corporation with a stated dividend that must be paid before dividends to holders of common stock. Preferred stock typically does not have voting rights.

Unlike common stock, preferred stock pays a fixed dividend that does not fluctuate, although the company does not have to pay this dividend if it lacks the financial ability to do so. The main benefit to owning preferred stock is that the investor has a greater claim on the company’s assets than common stockholders. Preferred shareholders always receive their dividends first and, in the event the company goes bankrupt, preferred shareholders are paid before common stockholders. In addition, in many cases, preferred shareholders negotiate liquidation preferences that also allow them, in the event of a sale (or other change in control) of the company, to receive a pre-negotiated minimum return on their original investment before common shareholders can realize any return on their investment.