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Debt and Equity: The pillars of the company's finances

  • Fundamental Analysis

Overview

In this course you will learn about the basics of a company's debt and equity, including convertibles and preferreds. Each has their own benefits and risks. With a better understanding of the pillars of a company's finances you can make more knowledgeable investment decisions for your portfolio.

Objectives

When you complete this course, you will:

  • Be familiar with the key terms and concepts associated with debt and equity
  • Understand the nuances of debt and equity and the risks involved with both
  • Be able to determine if investing in debt, equity, or both may be right for your portfolio
Course Outline
Title Type Highlight
1. A tale of two paths to capital: Debt and equity Video
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Investors can look at the capital structure as the master financial blueprint of the firm and the key to understanding the value of a company’s equity and debt.

Investors can look at the capital structure as the master financial blueprint of the firm and the... More
2. The basics of debt Article
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Pay special attention to the Types of debt investment section. Debt securities generally have similar characteristics - but there are some important exceptions to understand.

Pay special attention to the Types of debt investment section. Debt securities generally have... More
3. The basics of equity Article
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When you buy a stock the shares you purchase represent an equity stake in the firm. There are different types of equities, each have different features that are important to take note of. For example, common shareholders typically have the right to vote in elections determining the company’s board of directors.

When you buy a stock the shares you purchase represent an equity stake in the firm. There are... More
4. Convertibles and preferreds Article
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When considering convertible bonds and preferred stock, keep in mind that every issue of these securities is an individually customized hybrid with its own unique risk and reward potential.

When considering convertible bonds and preferred stock, keep in mind that every issue of these... More

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

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