Chapter 5: Overview of Equity Securities

In this section

• Common vs. Preferred Shares
  Common vs. Preferred Shares (CFA Level 1): Core Features of Common (Ordinary) Shares, Core Features of Preferred Shares, and Comparison of Common and Preferred Shares. Key definitions, formulas, and exam tips.
• Voting Rights and Share Classes
  Voting Rights and Share Classes (CFA Level 1): Understanding Voting Rights, Multiple Share Classes, and Case in Point. Key definitions, formulas, and exam tips.
• Dividends and Distribution Policies
  Dividends and Distribution Policies (CFA Level 1): Understanding Dividends and Corporate Earnings, Types of Dividends and Distribution Methods, and Cash Dividends. Key definitions, formulas, and exam tips.
• Depositary Receipts and Global Equity Access
  Depositary Receipts and Global Equity Access (CFA Level 1): Defining Depositary Receipts, How DRs Facilitate Global Equity Access, and Structure and Participants. Key definitions, formulas, and exam tips.
• Convertible Preference Shares and Hybrid Securities
  Convertible Preference Shares and Hybrid Securities (CFA Level 1): Key Features of Convertible Preference Shares, Conversion Mechanics, and Mandatory vs. Voluntary Conversion. Key definitions, formulas, and exam tips.
• Share Warrants and Rights Issues
  Share Warrants and Rights Issues (CFA Level 1): What Are Warrants?, What Are Rights Issues?, and Key Differences Between Warrants and Rights. Key definitions, formulas, and exam tips.
• Dividend Reinvestment Plans (DRIPs) and Scrip Dividends
  Dividend Reinvestment Plans (DRIPs) and Scrip Dividends (CFA Level 1): Dividend Reinvestment Plans (DRIPs), Key Concepts and Features, and Why Companies Offer DRIPs. Key definitions, formulas, and exam tips.
• Employee Stock Option Plans (ESOPs) and Share-Based Corporate Incentives
  Employee Stock Option Plans (ESOPs) and Share-Based Corporate Incentives (CFA Level 1): Purpose and Key Components of ESOPs, Vesting Schedules, and Exercise Price. Key definitions, formulas, and exam tips.
• Dual-Class Share Structures
  Dual-Class Share Structures (CFA Level 1): Rationale and Potential Benefits, Potential Drawbacks and Governance Concerns, and Regulatory Landscape and Global Perspectives. Key definitions, formulas, and exam tips.
• Share Repurchase Methods (Open Market, Tender Offer, Dutch Auction)
  Share Repurchase Methods (Open Market, Tender Offer, Dutch Auction) (CFA Level 1): Key Concepts in Share Repurchases, Open Market Repurchases, and Process and Features. Key definitions, formulas, and exam tips.
• Governance and Regulatory Considerations in Share Repurchases
  Governance and Regulatory Considerations in Share Repurchases (CFA Level 1): Transparency in Share Repurchases, Board Approvals and Shareholder Rights, and Regulatory Limits and Requirements. Key definitions, formulas, and exam tips.