Overview of Equity Securities | CFA Level 1

In this video on Overview of Equity Securities from CFA Level 1 Equity, we cover the essential characteristics and classifications of equity investments you need to know for the exam. We outline the key components of various share classes, private equity, and depository receipts. What we cover in this video: ✅ Common Shares: A look at how these represent ownership (residual interest) in a company, the lack of a contractual obligation to pay dividends, and the differences between proxy voting, statutory voting, and cumulative voting. ✅ Preference Shares: Understanding how they rank senior to common shares but junior to debtholders, their lack of voting rights, fixed dividends (cumulative vs non-cumulative), participating preference shares, convertible preference shares (popular in PE and VC transactions), and callable or putable features. ✅ Private Equity: Exploring unlisted equity privately placed with institutions, secondary market illiquidity, venture capital (start-up, early stage, or mezzanine financing), LBO vs MBO, PIPE (when a company requires financing quickly), and the ultimate objective of an IPO. ✅ Depository Receipts: Breakdown of ADRs representing an economic interest in a foreign company, Sponsored DRs (where the issuer is involved and holders have voting rights), and the distinctions between Level I (OTC), Level II, Level III, and Rule 144A. ✅ Return on Equity: How ROE serves as the primary measure of profitability on invested capital, including calculations based on opening or average BV. 📚 Gain full access to all our CFA Level 1 and 2 videos with one simple monthly subscription at https://www.stoynov.co.uk. LinkedIn:   / mstoynov   CFA 1 Newsletter: https://www.stoynov.co.uk/newsletter #cfalevel1 #privateequity #financeeducation #cfaprep #investmentmanagement