Credit & Capital
Preferred Stock Authorized
When a company has already issued common stock, why would it also authorize preferred stock? Does management view it as a financing tool similar to a credit line? What considerations lie behind authorizing without issuing? Based on industry practices, this article outlines the multiple strategic intentions behind preferred stock authorization.
Valuation of Preferred Stock
Addressing whether the timing of dividend payments affects market prices in preferred stock valuation, this article uses a case with an annual dividend of $5 and a required rate of return of 10% to analyze price changes at two points: before dividend maturity and after payment, and provides conclusions based on the perpetuity model.
What are the success fee's broker-dealers charge? 2020
In response to the user's question about success fee rates charged by broker-dealers in fundraising, this article compiles typical ranges based on industry practices, covering scenarios such as equity, real estate, and private placements, and notes differences across transaction types and terms.
What happens to vested RSUs when ‘issuance’ or ‘release’ of shares is deferred?
When restricted stock units (RSUs) have vested, but the employee chooses to defer the "issuance" or "release" of the shares, two key questions arise: Are these RSUs no longer considered outstanding shares? And should these vested but unissued/unreleased shares be counted toward common shares outstanding? Based on current rules, this article provides clear answers to the above questions.