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Capital structure: Difference between revisions
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Usually, common shareholders at the bottom, then preferred shareholders, then [[subordinated]] creditors, then unsecured (aka “ordinary”) [[Creditor|creditors]], then [[Secured loan|secured]] creditors. | Usually, common shareholders at the bottom, then preferred shareholders, then [[subordinated]] creditors, then unsecured (aka “ordinary”) [[Creditor|creditors]], then [[Secured loan|secured]] creditors. | ||
That kind of thing. | |||
When you have a convoluted corporate structure — hey: who doesn’t? — then the arrangement between the various entities in your group of shareholdings, inter-company loans, [[parental guarantee]]s and so on can be quite the game of pan-dimensional chess. | |||
===The [[capital structure]], charted=== | |||
{| class="wikitable" | {| class="wikitable" | ||
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| [[Shareholder|Common equity]]|| Outright last. || Not, technically, a creditor at all, but an ''owner''. Good news: your claim is unlimited; you are not ''owed'' anything; when all is said and done, you ''own'' it. Bad news: all has to be said and done first. You only get to work out ''what'' you own after all the creditors have bean at all the company’s assets with the wire-brush and Dettol and taken what's due to them. | | [[Shareholder|Common equity]]|| Outright last. || Not, technically, a creditor at all, but an ''owner''. Good news: your claim is unlimited; you are not ''owed'' anything; when all is said and done, you ''own'' it. Bad news: all has to be said and done first. You only get to work out ''what'' you own after all the creditors have bean at all the company’s assets with the wire-brush and Dettol and taken what's due to them. | ||
|} | |} | ||