This week, the term we’re exploring is very important on both sides of the table but is of particular interest to investors: pro rata rights. Continue reading
private equity
The reason why an increased valuation doesn’t necessarily lead to an increased price per share? Equity dilution. Continue reading
Also known as a “locked-up,” “lock-in,” or “lock-out” period, a lock-up period is the timeframe in which existing shareholders, such as corporate insiders, employees, owners, founders, and private investors, are prohibited from selling or redeeming their shares in a company … Continue reading
There are two types of equity: preferred and common. You should understand the differences between the two to fully weigh the pros and cons of each. Note that there are no absolutes in private equity. Issuing stock often involves negotiated … Continue reading
Private equity investments hit a new record in 2017 with ~$453 billion raised. This surpasses the previous record of $414 billion, which was set in 2007. This is due, in part, to an increase in fund sizes – for example, … Continue reading
