What are Diluted Shares? Formulas and Examples

In this article, we will explain what diluted shares are. We shall look at some formulas and examples associated with these types of shares. Furthermore, we shall look at sources as well as the pros and cons of share dilution. For instance, if you have an ownership stake of twenty percent (20%) in a company … Read more

What are authorized shares?

Importance Authorized shares are one of the ways through which companies raise funds. When a startup or an already established company wants to raise funds, there are basically four ways it may do so: Contributions from the business founders, their family, or friends. Taking a loan out from the bank. Issuing debt instruments. Issuing equity … Read more

What are restricted shares? RSA vs RSU

What are restricted shares? Startups and established companies either public or private are known to issue a certain kind of shares to their employees as an incentive; these shares are known as restricted shares. There are two types of restricted shares: RSA and RSU; we will look at what they are and their importance. Additionally, … Read more

What are fractional shares? pros and cons

Before the advent of fractional shares, it was very difficult for people to invest in well-established companies whose stock prices were quite high. As of August 16, 2022, the price of one share of Berkshire Hathaway Inc Class A (NYSE: BRK.A) was $455,170.00. It means that unless you have enough money laying around, buying shares … Read more

Common stock: asset or liability?

If you have ever wondered if common stock is an asset or liability, you are not alone. A lot of people seek to invest their money in stocks but most are unsure if the investment will be an asset or a liability. Our discussion shall answer the question is a common stock asset or liability … Read more

What are equity stocks? types and list

Equity stocks are known to be a long-term source of capital for companies because they generally have no maturity date; meaning they exist for as long as the issuing company exists. This additionally makes them an attractive investment option for investors. We shall discuss the types and characteristics of equity stocks. We shall further look … Read more

What is a golden share in a company?

There are several kinds of shares; this gives companies and investors a wide variety of options when issuing or purchasing shares respectively. Our focus here shall be on the concept of a golden share in a company and what it entails. We shall also consider the pros and cons of this type of share and … Read more

Common vs preferred stock differences and similarities

We will discuss the differences between common vs preferred stock in terms of their characteristics, types, and their examples. The advantages and disadvantages of having these two types of stocks in your portfolio would also be outlined. For decades, companies issue stocks as a means of raising funds to finance various projects such as expansions, … Read more

What is negative equity?

If you have ever taken a loan, you might have heard the word negative equity and positive equity before now but what exactly do they mean, and what is their impact on a person or entity? Before we delve into discussing what is negative equity, let us understand what equity means. Simply put, it is … Read more

What are mid cap stocks? List and examples

Mid cap stocks tend to be issued by businesses that have established some level of consistency in their industry by being in business for quite a while. They generally have a substantial size, a considerable workforce, and branches or outlets both in their domestic countries and overseas. These companies tend to be fast-growing businesses that … Read more