Private Equity
Private Equity / Private Placement
Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, expand working capital, and to bolster and solidify a balance sheet.
Types of Shares
| Ordinary Shares | Preference Shares |
|---|---|
| Shareholders of these shares are the owners of the company | They are not owners of the company |
| Receive dividends after preference dividend been paid | FIXED Dividend according to contract |
| Ordinary shares have no right to an accumulation of dividends from previous years. | All accumulated dividends must be paid to preference shareholders before any dividend for ordinary shareholders is declared. |
| Shareholders has voting rights | NO Voting Rights |
| More profits, more dividend, No profits, No Dividend | In the event of dissolution, they would receive their capital |
| Greater Risk | Less Risk |
