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CONVERTIBLE BONDS EXPLAINED - TESLA CONVERTIBLE BOND EXAMPLE
 
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What is a convertible bond! A convertible bond is a debt instrument issued by a company in order to get financing. The company will pay a periodic interest rate on the borrowed amount and, like any other bond, the bond has a maturity date. But, unlike other bonds, the holder of the bond can choose between getting his money back or, converting his bonds for a pre-set number of shares in the company or common stocks. The decision depends on the value of the shares in that moment. If the market value of the shares is higher than the bond principal, it is better to convert. If the market value of the shares is lower, it is better to require the debt to be repaid. This video will discuss: What is a convertible bond - definition Why do companies issue convertible bonds - convertible bond advantages Why do investors buy convertible bonds Convertible bonds accounting What do you need to know as an investor in stocks that issue convertible bonds 3 convertible bond examples (Tesla convertible bond, Ctrip, 51Jobs) How do convertible bonds affect earnings (a bit of accounting) Convertible bonds conclusion What do I do? Full-time independent stock market analyst and researcher! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio): https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/
What is CONVERTIBLE BOND? What does CONVERTIBLE BOND mean? CONVERTIBLE BOND meaning
 
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What is CONVERTIBLE BOND? What does CONVERTIBLE BOND mean? CONVERTIBLE BOND meaning - CONVERTIBLE BOND definition - CONVERTIBLE BOND explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering. Convertible bonds are most often issued by companies with a low credit rating and high growth potential. To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt. The investor receives the potential upside of conversion into equity while protecting downside with cash flow from the coupon payments and the return of principal upon maturity. These properties lead naturally to the idea of convertible arbitrage, where a long position in the convertible bond is balanced by a short position in the underlying equity. From the issuer's perspective, the key benefit of raising money by selling convertible bonds is a reduced cash interest payment. The advantage for companies of issuing convertible bonds is that, if the bonds are converted to stocks, companies' debt vanishes. However, in exchange for the benefit of reduced interest payments, the value of shareholder's equity is reduced due to the stock dilution expected when bondholders convert their bonds into new shares.
Views: 714 The Audiopedia
Convertible Notes, Equity and Startup Funding Explained
 
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If you're starting your first company, understanding stock, preferred stock, options, convertible notes and other fundraising instruments can be truly overwhelming. We didn't find a single video that covered this, so here we go. If you are an early-stage startup company in the tech space, the best way to raise capital is with a convertible note or a similar instrument. However, to understand how those work, we first need to understand how stock works. STOCK You are probably familiar with the term 'stock.' A company is divided into chunks, and each shareholder owns a certain percentage of the company, which gives control of company decisions, and a share of the profits. A PRICED ROUND: RAISING MONEY FOR STOCK The 'traditional' approach towards raising capital is with a priced round. Tech companies are different. Tech companies have tremendous scale potential and often fantastic margins. A software product or an app, for example, can realistically operate with 80%+ margins, and serve millions of customers around the world, with a minimal staff. Think of Uber, who raised $500,000 on their first round, and are now worth, well, billions of dollars. So the value of a startup is not related directly to their revenue, but to their potential. Some variables to take into account here are: - The market size, how many customers are there in the world. - The technology variable, is there a unique piece of tech that nobody else has, or that optimizes a process drastically? - Potential margins, how many employees are needed to serve 100,000 customers or 1,000,000 customers? When Instagram had 300 million users, their staff was 13 people. However, all these numbers are variables and theories, and nobody knows for sure. The valuation of a startup is defined by how much potential an investor sees in the business, how risky it is, and how much upside do they want in exchange for risking their money, just like a bet. These days, a reasonable number for a tech company like our theoretical FounderHub would be a $4,000,000 (pre-money) valuation. Again, assuming this is a high scale, high margin business. All of these decisions require negotiations, and lawyers, and signatures to be put in writing, and they can make the process take six months or more from 'agreeing to invest.' Since most early companies don't have six months, they often choose to go with a Convertible Note. If you want to run your own calculations, you can download the free template we have at FounderHub.io?utm_source=youtube.com&utm_medium=video&utm_campaign=video-content&utm_term=fundraising CONVERTIBLE NOTES A convertible note is an instrument that delays the valuation conversation, and it allows the company to access the capital sooner, with less negotiation and much smaller legal fees. A convertible note is like a loan, but instead of using an asset like a house for collateral, the company stock is the collateral. This means, obviously, that the investor also needs to believe in the business to invest, because the note intends to convert into stock. Like I said before, defining a company valuation is tough. Too many variables, too little data... so with a convertible note, the investor is saying: I'll give you the money for you to grow now. In a year or so we should have the data to support a priced, traditional round, so my investment will convert then, with the valuation and terms that the new investors define. So a convertible note is an investment that triggers, - Ideally, on a new round of funding. - Also ideally, if the company is acquired. - At a predefined deadline, often 18 or 24 months after the original investment. At this point, investors can negotiate a note extension, they can convert it at the Cap, or they can request a payback, again, if the company can afford it. Now, YCombinator and 500 Startups have both designed documents inspired by convertible notes, but simpler. And free. The KISS-A (Keep it simple security) and the SAFE (simple agreement for future equity) are simplified convertible note templates that you can use to raise money and skip lawyer fees. You can download it on our FounderHub site, and refer to our knowledge base for more details on completing it. They both work as a convertible note but reducing a lot of the paperwork requirements. Alright. We have videos coming on the process of incorporating a business, distributing founder stock and vesting. Let us know which of those topics you would like us to prioritize. If you found this useful, help us out by subscribing and sharing. ► Subscribe to our Channel Here http://www.youtube.com/subscription_center?add_user=slidebean -- About Us: Slidebean is a pitch deck creation tool with hundreds of templates available to use as a starting point. Thousands of companies have used our platform to pitch investors and raise capital. ---- Follow Us: Twitter: https://twitter.com/slidebean Linkedin: http://www.linkedin.com/company/slidebean
Financial instruments - convertible debentures - ACCA Financial Reporting (FR)
 
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Financial instruments - convertible debentures - ACCA Financial Reporting (FR) Free lectures for the ACCA Financial Reporting (FR) Exam To benefit from this lecture, visit OpenTuition to download the notes used in the lecture and access all ACCA free resources. Access to all Financial Reporting lectures, and Ask the ACCA Tutor Forums Please go to opentuition to post questions to our ACCA Tutor, we do not provide support on youtube comments section. *** Complete list of free ACCA lectures is available on https://opentuition.com/acca/fr/ ***
Views: 5940 OpenTuition
What is Convertible Bond? | Definition of Convertible Bond
 
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What is Convertible Bond? | Definition of Convertible Bond: In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering. Convertible bonds are most often issued by companies with a low credit rating and high growth potential. Convertible bonds are also considered debt security because the companies agree to give fixed or floating interest rate as they do in common bonds for the funds of investor. To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt. The investor receives the potential upside of conversion into equity while protecting downside with cash flow from the coupon payments and the return of principal upon maturity. These properties lead naturally to the idea of convertible arbitrage, where a long position in the convertible bond is balanced by a short position in the underlying equity. From the issuer's perspective, the key benefit of raising money by selling convertible bonds is a reduced cash interest payment. The advantage for companies of issuing convertible bonds is that, if the bonds are converted to stocks, companies' debt vanishes. However, in exchange for the benefit of reduced interest payments, the value of shareholder's equity is reduced due to the stock dilution expected when bondholders convert their bonds into new shares. ………………………………………………………………………………….. Sources: Text: Text of this video has been taken from Wikipedia, which is available under the Creative Commons Attribution-ShareAlike License
Views: 89 Free Audio Books
What convertibles reveal about the stockmarket - MoneyWeek Investment Tutorials
 
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Companies in Europe have been issuing convertible bonds at a record pace. Tim Bennett looks at what all this activity tells investors.
Views: 3728 MoneyWeek
Convertible Bonds as an Asset Class
 
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(www.abndigital.com) Internationally convertible bonds are widely used by corporate companies to raise capital. Their yield is often lower than a normal bond in the same class but this is because conversion is possible. Once conversion occurs the convertible bond holder becomes a normal company shareholder. How many of these bonds are available in the market today and how do investors make use of this asset class.
Views: 780 CNBCAfrica
Convertible debt and preferred shares
 
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Convertible debt
Views: 146 Marianne M. Rexer
Chris McGuire: Uncorrelated Returns through unique asset swaps and convertible bonds in Japan
 
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Subscribe to this channel: http://www.youtube.com/OpalesqueTV Chris McGuire is Founder and CIO of Phalanx Capital Management, a Chicago-based Japan and Asia focused multi-strategy investment management company he launched in 2005. The firm specializes in Japanese convertible bonds and the Japanese asset swap market, a highly specialized asset class which provides very low correlation to global markets. In this Opalesque.TV interview, Chris describes why the convertible bond market and asset swapping in Japan are unlike any other asset class in the world and how this strategy can provide investors with uncorrelated returns. According to Chris, Japan's longstanding near-zero interest rate environment and limited listed options market drive a thirst for yield and massive convertible bond demand. This demand for the hybrid securities, which are part fixed income and part equity, creates opportunity to hedge out credit risk through asset swapping. By stripping out the fixed income component of convertibles and selling the bonds to a counterparty, who in turn repackage and distribute them throughout Japan to hungry regional banks and insurance companies, an attractive equity option remains. Asset swapping thereby either eliminates or severely reduces credit risk and provides non-correlation to global markets. With no listed equity options exchange in Japan, professionals also use convertibles to create optionality in building long volatility portfolios in a large economy where there is very little competition. In addition, learn about the following: • Benefiting from a "Warren Buffett" liquidity approach to risk management • Trade example: KDDI's convertible bond issuance and asset swap • How the Japanese asset swap hedges Phalanx' portfolio Chris McGuire is Founder, Managing Member and Chief Investment Officer of Phalanx Capital Management. He manages Phalanx's trading of the Japanese and Asian portfolio. Prior to launching the firm, he managed the Japanese multi-strategy portfolio for Daiwa Securities America. He joined Daiwa from Goldman Sachs where he ran Japanese and Asian relative value trading for the Spear, Leeds & Kellogg division. Prior to "SLK" he was in charge of trading and managing the Japanese convertible bond portfolio for Marin Capital Partners. His prior experiences include managing hedge fund sales for the convertible bond and equity divisions for Merrill Lynch - London, managing convertible bond sales for SBC Warburg-Tokyo, overnight relative value equity sales for BZW Securities, and trading commodity options for his own account on the floor of the Chicago Board of Trade. Chris graduated with a Bachelor of Arts in Communications from Marquette University in 1991.
Views: 1440 OpalesqueTV
Convertible Bonds 101 - Risks of Convertible Bonds
 
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Convertible bonds give the bondholder the right to convert the bonds into stocks. "Convertible Bonds 101" covers the features and benefits of convertible bonds, and will explain their risks and ways to invest. Click the link below to view more videos or download transcripts. http://www.allianzgi.sg/webcast
10 02 Hybrid Securities: Preferred Stocks and Convertible Securities
 
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Join the full course on SyMynd.com https://www.symynd.com/symynd/811/ Investing is not as difficult as you think; we will show you how. Speculating and trading are very, very difficult; we can't help you with those. After you have taken this course, you will have a strong foundation of the most important financial investments. We cover stocks, bonds, mutual funds, short-term investments (a.k.a. "cash"), hybrid instruments, derivatives, and a few alternative investments. We want to emphasize that this is an introduction class. You do not need any prior investment experience. In this course with more than 30 hours of videos, we start from the very beginning with the question, "What is an Investment?" Come join us! May be save or make some money.
Views: 785 symynd
APS Asset's Gheur Discusses Convertible Bonds, Stocks: Video
 
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Feb. 26 (Bloomberg) -- Adrien Gheur, portfolio manager at APS Asset Management Pte Ltd. in Singapore, talks with Bloomberg's Susan Li about investment strategy for convertible bonds and stocks. (This is an excerpt from the full interview. Source: Bloomberg)
Views: 350 Bloomberg
What is a Convertible Bond? How Do Convertible Bonds Work?
 
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What is a Convertible Bond? How Do Convertible Bonds Work? - Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Finance Videos - https://www.youtube.com/user/FinanceWisdomForYou convertible bond etf convertible bond arbitrage convertible bond funds convertible bond calculator convertible bond definition convertible bonds list convertable bonds reverse convertible bonds convertible bond parity convertable bond convertible bonds definition define convertible bond municipal bonds bonds convertible bond pricing bearer bonds bond market corporate bonds junk bonds what are bonds government bonds treasury bonds zero coupon bonds high yield bonds convertible bond fund what are mutual funds stocks and bonds what is a bond bonds definition investing in bonds corporate bond best convertible bond funds muni bonds treasury bond what is a mutual fund debenture bonds mutual funds municipal bond what are convertible bonds junk bond investment grade bonds savings bonds contingent convertible bonds convertible preferred stock corporate bond rates mutual fund what is my car worth t bills short term bonds convertible bond premium mutual funds definition buying bonds common stock bond fund bond funds bond investing bond trading bond ratings callable bonds what is diversity surety bond mandatory convertible bond bond pricing what is equity bond calculator types of bonds what is culture high yield bond discount bond government bond buy bonds exchange traded funds what is standard deviation how to invest in bonds mutual fund companies t bonds tax exempt bonds saving bonds bonds for dummies convertible securities convertible bond mutual funds bond trader pricing convertible bonds convertible bond etf convertible bond arbitrage convertible bond funds convertible bond calculator convertible bond definition convertible bonds list convertable bonds reverse convertible bonds convertible bond parity convertable bond convertible bonds definition define convertible bond municipal bonds bonds convertible bond pricing bearer bonds bond market corporate bonds junk bonds what are bonds government bonds treasury bonds zero coupon bonds high yield bonds convertible bond fund what are mutual funds stocks and bonds what is a bond bonds definition investing in bonds corporate bond best convertible bond funds muni bonds treasury bond what is a mutual fund debenture bonds mutual funds municipal bond what are convertible bonds junk bond investment grade bonds savings bonds contingent convertible bonds convertible preferred stock corporate bond rates mutual fund what is my car worth t bills short term bonds convertible bond premium mutual funds definition buying bonds common stock bond fund bond funds bond investing bond trading bond ratings callable bonds what is diversity surety bond mandatory convertible bond bond pricing what is equity bond calculator types of bonds what is culture high yield bond discount bond government bond buy bonds exchange traded funds what is standard deviation how to invest in bonds mutual fund companies t bonds tax exempt bonds saving bonds bonds for dummies convertible securities convertible bond mutual funds bond trader pricing convertible bonds What is a Convertible Bond? How Do Convertible Bonds Work? Finance Wisdom For You Finance Wisdom For You A convertible bond issue, like that of other bonds, will state the maturity and the coupon on the bond. A convertible bond also has information about the conversion option, or how many shares will be received for the bond if it is converted. For example, take a convertible bond that sells for $1,000. It has an annual coupon of 7% and can be converted into 100 shares at any time. Each year, the bondholder will receive What is a Convertible Bond? How Do Convertible Bonds Work? Gain the Financial Knowledge You Need to Succeed. Investopedia’s FREE Term of the Day helps you gain a better understanding of all things financial with technical and easy-to-understand explanations What is a Convertible Bond? How Do Convertible Bonds Work?
John Lekas and Reuters - Buy Convertible Bonds - Video
 
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Video of John Lekas saying convertible bonds of oil companies help investors play the rise in commodity prices with the possibility of equity-like returns while hedging with fixed income.
Views: 174 tubething13542
Hedge fund strategies: Merger arbitrage 1 | Finance & Capital Markets | Khan Academy
 
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Simple case of merger arbitrage when there is an all cash acquisition. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/risk-and-reward-introduction?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/hedge-funds/v/hedge-fund-strategies-long-short-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Hedge funds have absolutely nothing to do with shrubbery. Their name comes from the fact that early hedge funds (and some current ones) tried to "hedge" their exposure to the market (so they could, in theory, do well in an "up" or "down" market as long as they were good at picking the good companies). Today, hedge funds represent a huge class investment funds. They are far less regulated than, say, mutual funds. In exchange for this, they aren't allowed to market or take investments from "unsophisticated" investors. Some use their flexibility to mitigate risk, other use it to amplify it. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 111652 Khan Academy
What is a Convertible Note? Startups 101 -  Robert Neivert, 500 Startups
 
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Learn how to build your company from experts at 500 Startups and Galvanize. Sign up for upcoming workshops at http://galvanize.com/events. So, the first general rule of thumb is convertible notes are done when you’re doing a small amount, generally under a million, you are not an expert or haven’t had a chance to do the necessary research for an equity round, Fred Wilson is not financing you, because he doesn’t do convertible notes. The other thing about convertible notes is, they don’t define the valuation as clearly. But realistically, they kind of do. About Galvanize -------------------------- Galvanize is a dynamic learning community for technology. Our community is where people and companies with the guts and smarts to create real-world change congregate and inspire each other. Our goal is to make opportunities in technology available to all those with the aptitude, determination and drive. Follow Galvanize --------------------------- http://www.facebook.com/GalvanizeHQ http://www.twitter.com/galvanize
Views: 26056 Galvanize
What is FOREIGN CURRENCY CONVERTIBLE BOND? What does FOREIGN CURRENCY CONVERTIBLE BOND mean?
 
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What is FOREIGN CURRENCY CONVERTIBLE BOND? What does FOREIGN CURRENCY CONVERTIBLE BOND mean? FOREIGN CURRENCY CONVERTIBLE BOND meaning - FOREIGN CURRENCY CONVERTIBLE BOND definition - FOREIGN CURRENCY CONVERTIBLE BOND explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Foreign currency convertible bonds (FCCBs) are a special category of bonds. FCCBs are issued in currencies different from the issuing company's domestic currency. Corporates issue FCCBs to raise money in foreign currencies. These bonds retain all features of a convertible bond, making them very attractive to both the investors and the issuers. These bonds assume great importance for multinational corporations and in the current business scenario of globalisation, where companies are constantly dealing in foreign currencies. FCCBs are quasi-debt instruments and tradable on the stock exchange. Investors are hedge-fund arbitrators or foreign nationals. FCCBs appear on the liabilities side of the issuing company's balance sheet. Under IFRS provisions, a company must mark-to-market the amount of its outstanding bonds. The relevant provisions for FCCB accounting are International Accounting Standards: IAS 39, IAS 32 and IFRS 7. FCCB are issued by a company which can be redeemed either at maturity or at a price assured by the issuer. In case the company fails to reach the assured price, bond issuer is to get it redeemed. The price and the yield on the bond moves on the opposite direction. The higher the yield, lower is the price. Foreign currency convertible bonds are equity linked debt securities that are to be converted into equity or depository receipts after a specified period. thus a holder of FCCB has the option of either converting it into equity share at a predetermined price or exchange rate, or retaining the bonds.
Views: 5964 The Audiopedia
What is a valuation cap?
 
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A valuation cap is something that applies to convertible notes. A convertible note is a security that is a hybrid of both debt and equity. Notes are issued in the place of priced equity, typically when a company is raising less than a million dollars and does not want to generate the legal expenses associated with a priced round. When the company issues a larger amount of capital, the notes will have the option to “convert” into the newly issued securities at a pre-set “discount” to the price of the follow-on round. These discounts typically range from 15 to 25 percent. However, in order to provide investors with some of the protections of a priced round, they add a”cap” to the valuation. The “cap” sets the highest valuation that can be used to determine the conversion price of the notes. For example: If the notes have a 20 percent discount and a 5 million dollar cap, and the next round is priced at $5 million, the notes will convert as though they were originally priced at $4 million. However, if the next round is priced at $10 million, the notes will convert at a $5 million price instead of $8 million, as $5 million was the “cap” on the price of the original equity. This allows companies to postpone setting a valuation while protecting the upside of investors to a reasonable extent, as the lower the conversion valuation, the more equity the investor receives. Learn more at http://www.1000angels.com
Views: 14633 1000 Angels
PandoHouse Rock: Convertible Notes Explained
 
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Many startups are forgoing traditional seed funding in favor of convertible notes, loans which convert into stock after a company goes through its next round of funding. But are convertible notes good for startups? Are they good for investors? The Explainer Music team breaks it all down in its latest video.
Views: 36450 PandoDaily
Corporate Bonds
 
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Build your investment knowledge about corporate bonds and why they are issued, along with the different risks and benefits that are involved with secured and unsecured corporate bonds. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 56305 Zions TV
Introduction to bonds | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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What it means to buy a bond. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/corporate-debt-versus-traditional-mortgages?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 550095 Khan Academy
Bonds | Intermediate Accounting | CPA Exam FAR | Chp 14 p 1
 
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Long-term debt consists of probable future sacrifices of economic benefits arising from present obligations that are not payable within a year or the operating cycle of the company, whichever is longer. Bonds payable, long-term notes payable, mortgages payable, pension liabilities, and lease liabilities are examples of long-term liabilities. A corporation, per its bylaws, usually requires approval by the board of directors and the stockholders before bonds or notes can be issued. The same holds true for other types of long-term debt arrangements. Generally, long-term debt has various covenants or restrictions that protect both lenders and borrowers. The indenture or agreement often includes the amounts authorized to be issued, interest rate, due date(s), call provisions, property pledged as security, sinking fund requirements, working capital and dividend restrictions, and limitations concerning the assumption of additional debt. Companies should describe these features in the body of the financial statements or the notes if important for a complete understanding of the financial position and the results of operations.
Diluted Earnings Per Share (Antidilution Effect For Convertible Bonds & Convertible Preferred Stock)
 
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Accounting for convertible securities anti-dilutive effect, Convertible debt is anti-dilutive if conversion of the security causes C/S earnings to increase by a greater amount per C/S share than EPS was before the conversion (greater % increase in numerator than denominator for Diluted EPS), (A) Diluted EPS Convertible Bonds, Convertible Bonds converted into Common Stock, Assume conversion to C/S as of beginning of year, Pay no interest on convertible bonds for the year (Bond Interest added back net of taxes), Compare EPS without the dilutive securities, add the incremental effect of the Bonds, (B) Diluted EPS Convertible Preferred Stock, Convertible P/S converted into Common Stock, Assume conversion to C/S as of beginning of year, 0 Dividend because converted to C/S, No tax effect, P/S dividend not tax deductible (P/S Dividend added back, dividend avoided), Compare EPS for Bonds computed previously, add the incremental effect of the Peferred Stock,Since the recomputed EPS is increased, the effect of the Preferred Stock is anti-dilutive,If the convertible securities have anti-dilutive effect after recomputing the EPS, the security would not be included in determining the companies diluted EPS, detailed calculations by Allen Mursau
Views: 2026 Allen Mursau
Convertible debt: risks and terms to be aware of
 
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Free convertible notes calculator: https://equidam.com/convertible-note-calculator Read more on: https://www.equidam.com/convertible-debt-risks-and-terms/ Curious about your company valuation? Sign up for free at https://www.equidam.com/ In this video, Gianluca Valentini, co-founder of www.equidam.com, explains why convertible debt is a complicated security that can have drastic implications at the moment of conversion and highlights some terms founders should be aware of. ---- Today I'm going to talk about an alternative to the insurance of shares when you're raising capital for your seed round. We're going to talk about convertible loans or convertible debt. What is this? Well, first of all you should keep in mind that convertible debt is not equity. It sounds silly, but you shouldn't confuse the two of them, they are two very different types of securities. With equity or shares you are part of the shareholders. If you are a debt holder, as much as it is convertible, you are senior to the equity holders, meaning that in case of liquidation of the company for acquisition or for any other reason, you they are going to get their money back before the shareholders. That's very important. But this is not it! Because they are not simply debt holders, they are debt holders with a special right to convert into shareholders, meaning that they are protected from the downsides because they have debt, so they are senior to the equity holders, but they can also join the upsides whenever the company goes well, which sounds very favorable. Convertible debt is a very complicated security that can have very important and even drastic implications on your cap table whenever they convert. So it's very important for you, as a founder, to understand exactly what's going to happen and there are some tools online that will help you with that. Convertible debt comes with a few terms that you should absolutely read about. The first is the interest rate: what is, on the amount that the investor invests, what is the interest rate that he's going to gain throughout the tenure of debt. The second aspect is the discount, meaning that whenever they convert, they are going to get the discount on that valuation so if a new investor comes in, let's say a VC firm, and they buy into your valuation at 5 million pre-money, your debt holders are going to convert not a 5 million pre money, they are going to convert at 5 million minus the discount. That's very important. Then there is another very tricky aspect, the cap. The cap is the maximum valuation that they can convert at. If an investor comes in and values the company at 5 million pre-money but you have a cap for 3 million pre money, they're going to convert at 3 million plus the discount. It is very important because you may have your early stage investors or debt holders to convert at a very favorable valuation, meaning that the original founders will actually end up with much less in the company. I also have to say that some VC firms may be skeptical in investing in companies that issued convertible debt in such an early stage. That depends a bit on the geography, but it could be a problem in some cases, depending on the terms. In conclusion, be careful with that, it can be a good way to raise your first capital but if you think that you're going to escape the problem of valuating your business at such an early stage, that is not true. There is not a shortcut because any way, you are going to be required to put a cap, so you're going to have a valuation discussion anyway, because you should at least imagine what's going to happen when the next round comes in, which means when they are going to convert from debt to equity.
Views: 694 Equidam
Securities Based Financing - US Best Capital Partners - Block Trades - Convertible Debt Solutions
 
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http://www.usbest.biz/ - Tailored stock loans and securities based credit lines with no transfer of title - it's what we do! We specialize in liquidity solutions for high net worth borrowers, public companies and real estate investors worldwide, including loans on restricted and concentrated stock positions, block purchases, debt equity solutions and more. We welcome referring brokers. Copyright 2011 all rights reserved US Best Capital Partners, LLC
Views: 839 stockloansteve
Reverse Convertible Bonds
 
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Reverse Convertible Bonds combine an attractive fixed interest with a short term. While Classic Reverse Convertible Bonds enable investors to obtain yield in slightly rising markets, Protect Reverse Convertible Bonds allow investors to even generate yield in slightly declining markets. In the worst case scenario buyers of Reverse Convertible Bonds should be willing to become shareholders of the underlying share. Certificates Expert Stefan Neubauer explains the basics of this certificate category in a simple and easy manner. Further information about certificates issued by Austria's No. 1 certificate bank can be found at https://www.rcb.at
Types of Bonds
 
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This video discusses the various types of bonds issued by firms and other organizations. It provides examples and explains the meaning of various bond characteristics, such as call features, convertibility, securitization, etc. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 77619 Edspira
Convertible loans
 
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Tom discusses convertible loans – what they are, some of their key terms and why they are used to fund early stage companies.
Views: 96 Bristows Law Firm
Different Types of Bonds | Introduction to Corporate Finance | CPA Exam BEC | CMA Exam | Chp 7 p 4
 
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In this section, we briefly look at bonds issued by governments and also at bonds with unusual features. GOVERNMENT BONDS The biggest borrower in the world—by a wide margin—is everybody’s favorite family member, Uncle Sam. In early 2014, the total debt of the U.S. government was $17.5 trillion, or about $55,000 per citizen (and growing!). When the government wishes to borrow money for more than one year, it sells what are known as Treasury notes and bonds to the public (in fact, it does so every month). Currently, outstanding Treasury notes and bonds have original maturities ranging from 2 to 30 years. Most U.S. Treasury issues are just ordinary coupon bonds. There are two important things to keep in mind, however. First, U.S. Treasury issues, unlike essentially all other bonds, have no default risk because (we hope) the Treasury can always come up with the money to make the payments. Second, Treasury issues are exempt from state income taxes (though not federal income taxes). In other words, the coupons you receive on a Treasury note or bond are taxed only at the federal level. For information on municipal bonds including prices, check out emma.msrb.org. State and local governments also borrow money by selling notes and bonds. Such issues are called municipal notes and bonds, or just “munis.” Unlike Treasury issues, munis have varying degrees of default risk, and, in fact, they are rated much like corporate issues. Also, they are almost always callable. The most intriguing thing about munis is that their coupons are exempt from federal income taxes (though not necessarily state income taxes), which makes them very attractive to high-income, high–tax bracket investors. FLOATING-RATE BONDS The conventional bonds we have talked about in this chapter have fixed-dollar obligations because the coupon rates are set as fixed percentages of the par values. Similarly, the principal amounts are set equal to the par values. Under these circumstances, the coupon payments and principal are completely fixed. OTHER TYPES OF BONDS Many bonds have unusual or exotic features. So-called catastrophe, or cat, bonds provide an interesting example. In August 2013, Northshore Re Limited, a reinsurance company, issued $200 million in cat bonds (reinsurance companies sell insurance to insurance companies). These cat bonds covered hurricanes and earthquakes in the U.S. In the event of one of these triggering events, Northshore Re would receive cash flows to offset its loss. The largest single cat bond issue to date is a series of six bonds sold by Merna Reinsurance in 2007. The six bond issues were to cover various catastrophes the company faced due to its reinsurance of State Farm. The six bonds totaled about $1.2 billion in par value. During 2013, about $7.6 billion in cat bonds were issued, and there was about $20.6 billion par value in cat bonds outstanding at the end of the year. ncome bonds are similar to conventional bonds, except that coupon payments depend on company income. Specifically, coupons are paid to bondholders only if the firm’s income is sufficient. This would appear to be an attractive feature, but income bonds are not very common. A convertible bond can be swapped for a fixed number of shares of stock anytime before maturity at the holder’s option. Convertibles are relatively common, but the number has been decreasing in recent years. A put bond allows the holder to force the issuer to buy back the bond at a stated price. For example, International Paper Co. has bonds outstanding that allow the holder to force International Paper to buy the bonds back at 100 percent of face value if certain “risk” events happen. One such event is a change in credit rating from investment grade to lower than investment grade by Moody’s or S&P. The put feature is therefore just the reverse of the call provision. The reverse convertible is a relatively new type of structured note. One type generally offers a high coupon rate, but the redemption at maturity can be paid in cash at par value or paid in shares of stock. For example, one recent General Motors (GM) reverse convertible had a coupon rate of 16 percent, which is a very high coupon rate in today’s interest rate environment. However, at maturity, if GM’s stock declined sufficiently, bondholders would receive a fixed number of GM shares that were worth less than par value. So, while the income portion of the bond return would be high, the potential loss in par value could easily erode the extra return. Perhaps the most unusual bond (and certainly the most ghoulish) is the “death bond.” Companies such as Stone Street Financial purchase life insurance policies from individuals who are expected to die within the next 10 years.
Goldman Sachs To Buy Geely Convertible Bonds
 
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Goldman Sachs to own 30% of China's largest automaker and expects an explosion in China's auto market. (The Trade)
Views: 790 Bloomberg
Preferred Stock & Convertible Securities
 
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Join the course on introduction to investments on http://symynd.com/. Topic covered: Bond Indentures, Bond-to-Stock Conversion Provisions, Graphical Analysis of Convertible Bond Prices, Preferred Stock, preferred stocks (a.k.a. hybrid securities, fixed-income stocks), fixed dividend, par value, equity financing, dividend yield, preferred stock pricing, conversion feature, adjustable-rate preferred (a.k.a. floating-rate preferred, "floaters"), senior preferred (a.k.a. preference stock, prior preferred) versus junior preferred, cumulative preferred versus non-cumulative preferred, callable preferred versus non-callable preferred, participating preferred, convertible securities (a.k.a. convertibles, deferred equity), convertible bonds, convertible preferred stocks, "equity kicker", forced conversion, conversion privileges, conversion period,
Views: 2022 symynd
BUS123 Chapter 18 - Preferred Stocks and Convertible Securities - Slides 1 to 17
 
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Preferred Stock! Isn’t that what you want? Well, if you are the typical retail investor, no, not really. Leave the preferred stock to the corporate holding companies such as Warren Buffet’s Berkshire Hathaway. Convertible Securities! Doesn’t that sound sexy? Well, again, like convertible cars, the reality is often a very different experience than the image. These hybrid securities which look and act both like bonds and stocks may be of interest to some investors. However, in my humble opinion, for the vast majority of us retail investors, we are better off sticking to stocks for growth and income and bonds for income (or mutual funds of stocks and bonds).
Views: 108 WonderProfessor
How companies raise capital
 
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Ways to Raise Capital Debt - Types Equity - Private placement , IPO , Rights Hybrid Products - Convertible Bonds, FCCB's
Views: 696 BFSIacademy.com
CoCo Bonds (Contingent Convertible bonds)
 
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This is a introduction video for CoCo bonds and "CoCo Monitor"--an iOS app designed for CoCo.
Views: 5737 CoCo Monitor
Market Appetite for Convertible Bonds
 
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(www.abndigital.com) Shoprite recently announced that it has raised over R8 million in capital. Almost R3.5 billion will be allocated to equity while R4.5 billion will be issued in the form of convertible bonds. Joining ABN's Samantha Loring for a look at the market for convertible bonds is Simon Koch, Joint CEO of Sovereignty Capital.
Views: 156 CNBCAfrica
BondSheets.com: Convertible Bonds, Private Equity, MysteryHouston.com (made with Spreaker)
 
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Source: https://www.spreaker.com/user/bondsheets/bondsheets-com-convertible-bonds-private Where do you go when you need to resale your shares of private equity stock? Bondsheets.com allows you to post your information to allow other equity firms to buy what you want to sell. Why convertible bonds are so incising and safe? New company called MysteryHouston.com. There is a free market place for the people of Houston and the insights of what Houston has to offer.
Views: 7 James Henderson
How Convertible Notes Work
 
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Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders. If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from Early Growth Financial Services (www.egfs.co) where they explore how convertible notes really work, including: - Why convertible notes vs. shares of common or preferred stock - Convertible note terms - and the terms that REALLY matter - Conversion mechanics - Valuation cap - Safe alternatives to convertible notes - and more....!
Views: 6476 EarlyGrowth
What are bonds and Debentures || Bond क्या होता है
 
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Bonds and Debentures ? Both are long term debt instruments. Issued by Government of India or by public listed company ---------------------------------------------------------------------------------------------------- Share, Support, Subscribe!!! Subscribe: https://goo.gl/yNw13g Youtube: http://www.youtube.com/c/Finbaba Twitter: http://www.twitter.com/finbabaIndia Facebook: http://www.facebook.com/finbabaIndia Instagram: http://instagram.com/finbabaIndia ----------------------------------------------------------------------------------------------------- Subscribe Our Channel click Here for Latest Video https://goo.gl/yNw13g ----------------------------------------------------------------------------------------------------- Related Videos : Save Tax under section 80C : https://youtu.be/y5Sat6TcJHs Mutual funds : https://youtu.be/-gP4HfMCeBQ Gold ETFS :https://youtu.be/EPjiho6m1XI Arbitrage fund : https://youtu.be/3oyryG22H4I How to find stop loss : https://youtu.be/jZugeeEVSP0 FCNR account : https://youtu.be/G4GFoQFy_RI Stock Market Tax : https://youtu.be/hcYDeXEW6eY Stock Split : https://youtu.be/NQpW2oBemyk How to Buy Share Onlie https://youtu.be/g8Eb1LVNXM0 What is Cnadle stick https://youtu.be/-Sjhv7h3IT8 ------------------------------------------------------------------------------------------------------- Open Demat account :https://zerodha.com/open-account?c=ZMPASV ------------------------------------------------------------------------------------------------------- About: FinBaba is a you-tube channel, where you can get Information about Banking, finance, Stock market basic and Advance, Forex, Mutual funds and many more. Thanks For Watching this Video. !
Views: 112759 Fin Baba
The FCCB issue  How does it impact profitability of cos     Watch Video.flv
 
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We are talking about FCCBs or Foreign Currency Convertible Bonds and why the market is worried about the impact on profitability for companies in the quarters to come.
Views: 1289 generalknowledges
Other fixed income investments
 
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Other fixed income investments Convertible bonds Convertible bonds are another type of fixed income investment, but they're more of a cross between a bond and a stock. Convertible bonds are issued by smaller, growing companies. The company needs money to grow, but for some reason doesn't want to issue stock at what could be a currently low price. So the company issues convertible bonds. These bonds pay a lower interest rate than the going rate for corporate bonds of similar quality. But convertible bonds can be exchanged for new shares of the company's stock, usually at a favorable price and at the convertible bondholder's discretion. Initially, because the company's stock price is below the conversion price, bondholders don't convert their bonds into shares. But, over time, if the company's stock increases, the bonds become more valuable. So convertible bonds provide downside protection because they pay reasonably high current income, but they also have upside potential. If you have a large portfolio, you might want to place 15 percent of your bond money into a convertible bond mutual fund. Preferred stock Preferred stock, however, is one hybrid security that probably doesn't belong in an individual's portfolio. Preferred stock is really a fixed income investment and not an equity investment. Most types of preferred stock offer high, fixed dividend payments, with little chance to benefit if the company prospers. In the hierarchy of claims on a corporation's assets, preferred stock is ranked above common stock but below bonds. Preferred stock gets the name "preferred" because of this ranking above common stock in bankruptcy claims. Preferred stock is attractive to corporations The fixed payments to preferred stockholders are classified as dividends, and not as interest payments, so the payments are not tax deductible by the issuing company. Since companies that receive dividend payments can exclude most of the dividend payments from their taxable income, preferred stocks are attractive to corporations. The tax exclusion of dividends is open only to corporations, and is meant to reduce the effects of double or even triple taxation of dividends. The exclusion of preferred stock dividends means that preferred stock is more attractive to corporations than to individuals. So unless you're a corporation, you probably shouldn't invest in preferred stock. Miscellaneous fixed income plays Although I'd recommend that you stick with bank CDs, bond mutual funds, or guaranteed investment contracts when you do your fixed income investing, there are other fixed income investments out there. These include tax liens, adjustable rate mortgage funds or buying mortgages on your own. I'd recommend you stay away from these for the most part. They're riskier than you might think. Although there are plenty of other esoteric fixed income investments out there, corporate and government bonds represent by far the largest part of the fixed income market. Copyright 1997 by David Luhman
Views: 184 MoneyHop.com
Introduction To Bonds | Investopedia
 
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Find out how this method of debt investment is used to finance various levels of government and private companies.
Views: 351 Investopedia
Classification of securities with characteristics of both debt and equity
 
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Learn more at PwC.com - http://pwc.to/2iKbIRs Companies often finance operations with securities that have characteristics of both debt and equity. PwC’s Jonathan Rhine discusses three frequently encountered pieces of guidance, in the order they’re often considered: 1) Liabilities valued through earnings, 2) Embedded derivatives and 3) Mezzanine classified instruments. The accounting outcome can vary significantly based on the type of instrument issued and the literature that's applicable.
Views: 839 PwC US
What are Non Convertible Debentures or NCDs?
 
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This video will help you understand what are NCDs or Non Convertible Debentures. NCDs are secured high return safe investment options. These are financial instruments that are used by companies to raise money from the public via the issue of a debt paper for a specified tenure. NCDs work on the same principal as that of bank fixed deposits. However, there are certain salient features about NCDs that make them more attractive. To know more about NCDs check the video.
Views: 6729 Srei Bonds
⨘ } Corporate Finance } 003 } Bond Valuation }
 
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This lecture discusses about corporate and government bonds, valuation, and yield to maturity. Government bonds are less risky as compared to firms of municipalities. Global bond markets exceeds $100 trillion in which US and Japan have major contribution of $33 trillion and $14 trillion respectively. Bonds are very volatile to interest rate changes. A change in interest rate has greater effect on prices of long-term bonds. Convertible bonds offer advantage that these can be exchanged for shares in future. If you need private lessons you may contact at: [email protected] Do not forget to subscribe { Leprofesseur } YouTube Channel. Sincerely, H.
Views: 4783 LEPROFESSEUR
The changing face of coco bonds | FT Markets
 
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► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs Outlook for contingent convertible bonds. The FT's Dan McCrum and Tom Hale explain coco bonds and discuss their outlook following the recent problems they have created for financial institutions For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 1260 Financial Times
what is stock market
 
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A equity market often know as stock market or share market, is a market where shares of companies or entities are issued and traded, either through exchanges or through listed dealers or brokers. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds. Equity market is the aggregation of buyers and sellers of stocks. The equity sale gives a company access to capital and investors a slice of ownership in a company with the potential to realize gains based on the future performance of the company.
Views: 5 The First news
What's UP with Startup Valuations?
 
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Startup Valuations are going up year after year. What is causing this phenomenon and what can be done about it? Peter Adams, RVC Executive Director and Author of Venture Capital for Dummies discusses several causes for increasing startup valuations. What is going on with Startup Valuations? Angel Investors and VCs who have been investing for ten years or more have noticed a big change in Startup Valuations. In fact, just in the last year average startup valuations have gone up by over 50%. What factors could possibly lead to such a rapid jump? Here are Five things to think about for investors and startups. The Shark Tank Phenomenon ABC’s Shark Tank brings in over six million viewers each week and with that viewership comes a lot of people who want to become “sharks”. The result is a lot of amateur angel investors who have no idea about how to value an early stage company and $5 or $10 million sounds good to them, resulting in overblown valuations. The Accelerator Phenomenon Starting with Y Combinator and TechStars, now there are hundreds of accelerators in the U.S. and graduates from these programs are commanding higher and higher valuations. It’s in the best interest of accelerators to get the highest valuations for the companies graduating from their programs since it makes the programs look great and also rewards the Limited Partners in accelerator funds who take up to seven percent of a company’s equity for as little as $20,000 in some cases. High valuations lead to high paper profits for these investors. The Convertible Debt Phenomenon Angel investors used to do most of their deals as straight equity. An investor got stock in the company in return for their investment. In recent years convertible debt has become the preferred investment vehicle for angel deals by a factor of over three to one over equity deals. Convertible debt valuations take the form of a “valuation cap” which should be equal to what the equity valuation in the deal would have been if it had been an equity deal. Unfortunately many entrepreneurs and amateur angel investors alike have become confused about the valuation, thinking that it should be equal to the valuation a year or two down the line, once the entrepreneur has taken the investors risk capital and grown the company. We have seen companies that should have been valued at $3 or $4 million today going for upwards of $10 million with the rationale being that the company would be worth way more than that in 24 months and the investors should be glad to just be able to get in on the deal. The Unicorn Phenomenon With over 150 private startups now boasting valuations of over $1 billion, everyone is pointing to these valuations as a justification for higher startup valuations. Unfortunately very few companies will achieve unicorn status, and yet many startups are using Uber, Air B&B, Pinterest and others as “comps” for their valuations. Using unicorns as comps raises valuations without being justified by the probability of a unicorn outcome for most of these companies. Pathway to the Future of Startup Valuations Angels who invest in groups are paying much more reasonable valuations for the companies they invest in. The Angel Capital Association is comprised of hundreds of angel groups who are not impacted by the various phenomena listed above and which are using more rational methods of startup valuation. Groups are seeing valuations that are as much as 25-50% lower than the deals done by individuals and accelerators. If the Halo report, PitchBook and CB Insights were to separate out valuations by angels investing in groups, we would see some different numbers than are currently reported. Smart angel investors will collaborate with other groups to determine good valuations that are fair to both founders and investors and which represent a rational balance of high risk and potential return for successful investments.
Views: 484 Rockies VC
What Is A Convertible Preferred Share?
 
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Preferred stock convertible bonds etfs that offer exposure to both preferred and bonds, which are considered hybrid debt equity instruments Introduction shares investopedia. My best investing idea for 2017 frontier communications, 11. Convertible preferred stock for beginners the balance. Googleusercontent search. Convertible preferred equity definition from financial times lexicon. You can instead raise money by privately issuing preferred stock is a type of which may have any combination features not possessed convertible these are issues holders exchange for predetermined number the company's redeemable shares. Convertible preferred stock investopedia that includes an option for the holder to convert shares into a fixed number of common shares, usually anytime after 6 feb 2017 buying stocks always poses risk losing money, but avoiding altogether means missing out on opportunity make good profits 3 jun 2016 convertible is special type can be converted. Each has investment the conversion price of convertible preferred equity indicates how many shares venture capitalist receives in exchange for their loan definition stock (preference shares) that can be converted into common (ordinary at option financial dictionary by free online english and encyclopedia. 001 per share)(the corporation ), a maryland 7 dec 2016 i recommend purchasing frontier communications, 11. Zacks differences between preferred stock convertible 7160. Convertible preferred stock investopedia. Html url? Q webcache. In may 2005, the company authorized issuance of up to 9,885,000 shares redeemable convertible preferred while there be many kinds hybrids in investment universe, bonds and stock occupy important positions. What is a convertible preferred stock? Value linethe differences between stock and what The motley foolmeaning vspreferred wikipedia. Introduction to convertible preferred shares investopedia. Slideshow convertible preferred stocks, from stock channel is a type of that gives holders the option to convert their shares into common after date series voting convertible(par value $. Series a voting convertible preferred stock sec. What is convertible preferred stock? Definition and meaning stock financial definition of stocks slide 1 52 channel. Preferred stock confers very different rights on the shareholder than common and comes in various flavors, including convertible non if you want substantial investment income with potential growth, this is something should know more about preferred of that allows to exchange them for specific amount shares run growing, privately held corporation, your need additional cash may exceed available credit. What is convertible preferred stock? . Convertible preferred stock everything you need to know. 125 top 16 preferred stock convertible bonds etfs etf database. Learn more with real world 17 nov 2009 in most cases, convertible preferred stocks are similar to bonds and respond accordingly the market place. However, there are the differences between preferred stock and convertible finance. Convertible preferred shares for wikinvestconvertible bonds fidelity.
Views: 58 Pin Pin 1
What is DEATH SPIRAL FINANCING? What does DEATH SPIRAL FINANCING mean?
 
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What is DEATH SPIRAL FINANCING? What does DEATH SPIRAL FINANCING mean? DEATH SPIRAL FINANCING meaning - DEATH SPIRAL FINANCING definition - DEATH SPIRAL FINANCING explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Death spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall. Many small companies rely on selling convertible debt to large private investors (see private investment in public equity) to fund their operations and growth. This convertible debt, often convertible preferred stock or convertible debentures, can be converted to the common stock of the issuing company often at steep discounts to the market value of the common stock. Under the typical “death spiral” scenario, the holder of the convertible debt initially shorts the issuer’s common stock, which often causes the stock price to decline, at which time the debt holder converts some of the convertible debt to common shares with which he then covers the debt holder's short position. The debt holder continues to sell short and cover with converted stock, which, along with selling by other shareholders alarmed by the falling price, continually weakens the share price, making the shares unattractive to new investors and possibly severely limiting the company’s ability to obtain new financing if necessary. An important characteristic of this kind of convertible debt is that it often carries conditions like a quarterly or semiannual reset of the conversion price to keep the conversion price more or less close to the actual stock price. However, a lower conversion price also increases the number of shares that a bond holder gets in exchange for one bond, which increases the dilution of existing shareholders. A lower price reset can also force investors that have set up a long CB/short stock position to sell more stock ("adjust the delta"), creating a vicious circle, hence the nickname death spiral. Companies willing to agree to financing on these terms are often desperate and could not obtain funding through any other means. The terms, though viewed by some as onerous, give the lender a potential way to recover their debt regardless of what happens to the shares of the company. The lender would have a potentially greater gain if the shares were to increase in value, but if they decrease in value, there is some protection. Otherwise, they would probably not be willing to lend the money because of the poor risk profiles of the companies interested in this type of financing.
Views: 874 The Audiopedia