Equity Instrument Features
Free CFA Level I lesson in Equity Investments. 14 min read, ~2,162 words.
Common shares: residual claim, variable dividend, voting rights, and the highest risk and return of the equity stack. Preferred shares: fixed dividend, prior claim over common, usually non-voting. Cumulative preferred: missed dividends accrue and must clear arrears before any common dividend. Non-cumulative: missed dividends are forgone. Participating preferred: extra dividends...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- equity instrument features
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