FNCE20005 Lecture Notes - Lecture 7: Sole Proprietorship, Venture Capital, Secondary Market
Document Summary
No agreement for a timeframe for return on capital. Only get a return through share buyback or selling shares. There are di erent forms of equity - the most common being ordinary shares: ordinary shareholders have full voting rights. 1 share = 1 vote on matters presented at agm: shareholders hold residual claim: Only get whatever is left over - most of the time this is less than you invested. Subordinated right to a return on capital. Subordinated right to a return of capital on liquidation: it is the most risky form of investment (but typically gives the highest return) Oating his company via an initial public o ering (ipo) for additional capital. To small group of investors: rights issue. To existing shareholders: private equity financing. Venture capital: initial public o ering (ipo) Listing shares rst time: dividend reinvestment plan. To existing shareholders (o ered to reinvest dividend to apply for new shares)
