Equity finance - introduction

In this lesson

1. 0:00 Welcome to Equity Finance
2. 0:21 Share types and stock market listing
3. 1:10 Rights issues and share mechanics
4. 1:28 Cost of equity methods explained
5. 2:26 Learning outcomes and key skills
6. 3:17 Real-world study techniques

About this lesson

This section covers key concepts like rights issues, the dividend growth model for calculating cost of equity, and the Capital Asset Pricing Model (CAPM)—all essential knowledge for understanding how companies finance themselves and the returns shareholders expect. By the end of this introduction, you'll be able to discuss different flotation methods and evaluate which financing options suit various businesses and stakeholders. You'll also develop the skills to perform calculations around share issues and determine appropriate discount rates, while understanding the advantages and disadvantages of listing from multiple perspectives. The content is grounded in real-world practice. To get the most from this section, explore recent share listings in your local market and think critically about why companies choose equity over debt. If possible, use your own company's data—or that of a listed company in your sector—to calculate cost of equity using both the dividend growth model and CAPM. Comparing these two methods will deepen your understanding and show you how theory applies in practice.

Duration: 5m