Equity Securities Common vs. Preferred Shares

This video covers the following learning objectives:

1. Describe the characteristics and ownership structure of equity securities

• Equity as ownership in a corporation

• Differences between equity and debt

• Residual claim and role in capital structure

🔹 2. Identify and compare features of common and preferred shares

• Rights of common shareholders (voting, capital growth, dividends)

• Features of preferred shares: fixed income, priority in dividends

• Comparison of income, control, and risk between the two types

🔹 3. Explain different types of preferred shares

• Cumulative vs. non-cumulative

• Callable, retractable, and convertible preferreds

• How features affect risk and return for investors

🔹 4. Calculate key return metrics for equity securities

• Dividend yield formula with step-by-step example

• Break-even price for convertible preferred shares

🔹 5. Evaluate suitability of equity types using investor profiles

• Case-based reasoning for matching securities to investor goals

• Growth-focused, income-oriented, and hybrid scenarios