Daily Business Dose: Today’s Investment instrument is The Non-Dilutive investment in callable equity (NICE). A non-dilutive investment in callable equity refers to an investment in which the investor provides capital to a company without diluting the ownership stake of existing shareholders. This type of investment typically involves the issuance of callable preferred stock or convertible preferred stock. Here's how it works: 1. **Callable Preferred Stock:** Callable preferred stock is a type of preferred stock that gives the issuer the option to redeem (or "call") the shares at a predetermined price after a specified period. Investors receive dividends on the callable preferred stock until it is called by the issuer. This form of investment provides the company with capital without diluting the ownership of common shareholders because the preferred stock does not grant voting rights. 2. **Convertible Preferred Stock:** Convertible preferred stock allows investors to convert their preferred shares into a predetermined number of common shares after a specified period. Until conversion, investors receive dividends on the preferred stock. Similar to callable preferred stock, convertible preferred stock allows the company to raise capital without immediately diluting the ownership of common shareholders. Non-dilutive investments in callable equity differ from other investment instruments, such as common stock or traditional debt, in several ways: 1. **No Voting Rights:** Investors in callable equity typically do not have voting rights, unlike common shareholders. 2. **Limited Dilution:** These investments allow the company to raise capital without diluting the ownership stake of existing common shareholders, at least initially. However, if the preferred stock is convertible, there is potential dilution upon conversion. 3. **Fixed Dividend Payments:** Preferred stockholders usually receive fixed dividend payments, which are prioritized over dividends paid to common shareholders. This fixed income feature can be attractive to investors seeking stable returns. 4. **Redemption or Conversion Features:** Callable equity instruments often include redemption or conversion features, giving the issuer flexibility in managing its capital structure. #finance #investing #startupfunding
شركة STV تطلق أداة التمويل عبر الأسهم القابلة للاسترداد "NICE" لتمويل الشركات الناشئة. تأتي الأداة كبديل لأدوات الدين الجريء التقليدية، وتعتبر تابي أولى الشركات المستفيدة منها من خلال STV. https://jawlah.co/35880
