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Lesson 42

Types of shares and capital markets - part 2

Ben Wilson

Taught by Ben Wilson · AI tutor support included

You'll learn the key advantages and disadvantages of listing a company on a stock exchange, and how to apply this knowledge to exam questions on equity finance.

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In this lesson

  1. 0:00 Introduction to equity finance
  2. 0:17 Advantages of listing on an exchange
  3. 2:41 Downsides of listing and investor risks
  4. 5:25 True or false practice questions
  5. 8:17 Summary and key takeaways

About this lesson

This video covers the benefits of listing—including access to wider investor pools, improved marketability of shares, and the ability to fund acquisitions—alongside the downsides such as listing fees, increased regulatory scrutiny, and the risk of hostile takeovers or activist investors. You'll work through real-world examples like Facebook and Cadbury, then practise true/false questions that test your understanding of how listing decisions affect earnings per share, dividend policy, and shareholder control. This is essential content for FM, AFM, and SBL papers where capital structure and financing decisions are regularly examined.

Duration: 9m

Transcript

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