liquidation ranking

In this lecture we discuss credit ratings and credit rating agencies, particularly as they relate to bond sales, credit risk, and default risk.

We explain what credit risk is and what the ratings actually mean in terms of the risk of an organisation failing to meet its bond payment obligations.

Along the way, we briefly mention commercial paper, liquidation rankings, the relationship of preference shares to bonds, and several more jargon terms used in the credit ratings arena.

The full YouTube playlist of Securities Investment 101 lecture videos can be found by clicking here.

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This MithrilMoney lecture continues our discussion on the different types of shares, in our Securities Investment 101 course.

We further explore liquidation ranking, and why different levels of risk and seniority should mean different expected levels of return and reward.

Liquidation preference is covered, which is of particular interest to angel investors, and we begin to talk about annual general meetings, dividend awards, and how there can be different types of ordinary share – such as ‘A’ and ‘B’ shares – with different levels of control.

The full YouTube playlist of Securities Investment 101 lecture videos can be found by clicking here.

Please read our disclaimer.

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Types of Shares, Part I, Lecture 002, Securities Investment 101

May 25, 2013

Continuing our MithrilMoney training course, Securities Investment 101, this video explores the different features and types of shares. We discuss the basic legal and investment differences between bond and share securities, the difference between registered securities and bearer securities, and the main difference between ordinary shares and preference shares (mentioning redeemable shares along the way), […]

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