What is a Convertible Preferred Stock? Definition, Feature, And How Does It Work?

Definition Convertible Preferred Stocks are considered a type of Preferred Stock that allows stockholders to convert their stock holding to common stock at a fixed conversion ratio. However, this conversion can only take place after a predetermined date. Even though this transaction mostly takes place upon the shareholder’s request, it can be seen that some …

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6 Types of Business Activities You Should Know

All businesses are built on various functions in which they are experienced. The actions of companies contribute to the increase in production and the organization’s expansion. Every company sets together various rules and procedures to ensure that these operations operate as efficiently as possible. To ensure that they abide by all the government regulations while still satisfying employees and …

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What is Venture Capital?: Definition, How Does It Work? Advantages and Disadvantages

Definition: Venture capital is finance provided by venture capitalists to a company they deem to have high growth potential or a high future earning prospect. Venture capitalists are veteran investors and maybe anyone from wealthy investors to investment banks or companies. They generally provide startup and late-stage growth finance to smaller companies. The capital is …

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What is a Capital Expenditure Budget? Definition and Purpose

Definition Every company wants to expand its operations and be more competitive. This requires a certain outlay of capital expenditure with careful planning. The planning for capital expenditure requires meticulous thinking and is prepared in the capital expenditure budget. A budget is a great tool for spending money as capital expenditures and spending it more …

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