Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Hybrid Securities
In basic terms, hybrid securities have features that easily distinguish them from other kinds of securities. In their most basic form, they have characteristics of both equity and debt. For this reason, they cannot be classified as either debt or equity. The three hybrid securities I concern myself with below are convertibles, warrants, and preferred stock.
Preferred Stock
In the words of Carey and Essayyad (2001), "preferred stock is a security which pays fixed dividends" (p.89). When seeking to raise capital for growth or expansion, companies can issue two kinds of stock, i.e. common and preferred stock. As is the case with common stock, investors who buy preferred stock provide the company with money in exchange for the corporation's shares. For this reason, preferred stock can be likened to equity. It is however important to note that preferred stock could in some instances be likened to bonds. This is particularly the case given that they pay a regular dividend. Unlike common...
In the event of liquidation, preferred stockholders have a claim on the assets of an entity before common stockholders (but after holders of corporate bonds) and for this reason, many view preferred stock as being safer than common stock (Carey and Essayyad, 2001). Companies could use preferred stock as a way of regulating control of the business. This is particularly the case given that holders of this kind of stock lack voting rights.
Warrants
In basic terms, "a warrant is a security that allows the holder to subscribe to another newly issues security (share, bond, or even another warrant) during a given period, in a proportion and at a price fixed in advance" (Vernimmen et al. 2011, p.461). Should the price of the security rise above the said fixed price, then the holder of the warranty can purchase the same security at the price fixed in advance and offer it for…
References
Carey, O.L. & Essayyad, M. (2001). The Essentials of Financial Management. New Jersey: Research and Education Association, Inc.
Vernimmen, P., Quiry, P., Fur, Y.L., Salvi, A. & Dallochio, M. (2011). Corporate Finance: Theory and Practice (3rd ed.). Chichester, West Sussex: John Wiley & Sons.
References www.questiaschool.com/PM.qst?a=o&d=113454035 Cole, C., Ray, K., & Zanetis, J. (2004). Videoconferencing for K-12 Classrooms: A Program Development Guide. Eugene, or: International Society for Technology in Education. Retrieved November 26, 2008, from Questia database: http://www.questia.com/PM.qst?a=o&d=113454035 FAQs about Internet2. Retrieved November 26, 2008, at http://www.internet2.edu/about/faq.html www.questiaschool.com/PM.qst?a=o&d=106217067 Goodman, P.S. (Ed.). (2002). Technology Enhanced Learning: Opportunities for Change. Mahwah, NJ: Lawrence Erlbaum Associates. Retrieved November 26, 2008, from Questia database: http://www.questia.com/PM.qst?a=o&d=106217070 Hanss T. Internet2: Building and Deploying Advanced,
Security Information is the Power. The importance of collecting, storing, processing and communicating the relevant information presently is viewed as crucial in order to achieve success in almost all the fields be it business firms, individuals or organizations. An integrated set of components assisting collection, store, process and communication of information is termed as information system. Increasing dependence on information systems is noticed in order to excel in the respective fields
Class Assessment Techniques Classroom Assessment Techniques are decisive methods of evaluation that are useful in two major areas. The level of which the student has understood the content of the course can be assessed and provides information regarding your teaching methods efficiency. It's an approach which bases on the fact that the planning of learning activities and structuring of teaching is better when one knows the how and what the student
IT Security Assessments (Process of matching security policies against the architecture of the system in order to measure compliance The systems security assessment is the method of creating a security policy that would be complimentary to the architecture of the system and the method would allow for the measure of compliance. Security assessments are activities that belong to the phase of the design cycle, and that is because it is
In the post-World War II model Japan, under the economic and political influence of the United States, began repairing its economy and was a clear strategic ally for the U.S. In relation to the Soviet Union. As Japan became more and more sophisticated and built up wealth, its reputation as a financial and technological leader grew until, but the 1980s, it surpassed most of the world in numerous business niches.
Security Governance Framework Veiga, A. (2007). An Information Security Governance Framework. Information Systems Management, 24 (4), pp. 361 -- 371. In the last several years, security governance strategies have been continually evolving. This is because the nature of the threats to an organization's network is increasing exponentially. To deal with these challenges, new techniques were developed. The article that was written by Veiga (2007) is focusing on four different strategies. That