Corporate Finance

Working Capital
Growth Capital
Recapitalization
Refinancing
Debt Financing
Equity Financing

Equity Financing

Public Equity		Private Equity
Initial Public Offering Secondary Offering Rights Offering	Common Stock Preferred Stock Convertible Preferred Stock Private Investment in Public Equities (PIPEs)

Convertible Preferred Stock
Convertible preferred stock is a security most similar to preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually at any time after a predetermined date. This enables the investor to participate in any growth of the company or appreciation in the value of common equity.

Convertible preferred stock is the common and accepted medium of private equity investing. It gives preference, including on dividends, distributions and liquidation, over other series of preferred stock and common stock, but has all the upside potential of common stock by virtue of a conversion feature.

Essentially, the security is designed to ensure that investors have the right to get their investment back, often with a fixed dividend or guaranteed return, before holders of common stock receive any sale proceeds, but also participate in any capital appreciation with common shareholders.