Preferred Equity Quotes

... Have you ever reflected that posterity may not be the faultless dispenser of justice that we dream of? One consoles oneself for being insulted and denied, by reyling on the equity of the centuries to come; just as the faithful endure all the abominations of this earth in the firm belief of another life, in which each will be rewarded according to his deserts. But suppose Paradise exists no more for the artist than it does for the Catholic, suppose that future generations prolong the misunderstanding and prefer amiable little trifles to vigorous works! Ah! What a sell it would be, eh? To have led a convict's life - to have screwed oneself down to one's work - all for a mere delusion!... "Bah! What does it matter? Well, there's nothing hereafter. We are even madder than the fools who kill themselves for a woman. When the earth splits to pieces in space like a dry walnut, our works won't add one atom to its dust.

the greater the gender equity of a country, the smaller the gender gap in the importance of the financial resources of a partner (as well as in the importance of other preferences, like chastity and good looks).36

Anyone who prefers owning a part of your company to being paid in cash reveals a preference for the long term and a commitment to increasing your company’s value in the future. Equity can’t create perfect incentives, but it’s the best way for a founder to keep everyone in the company broadly aligned.

The things that make a good Judge, or good Interpreter of the Lawes, are, first A right understanding of that principall Law of Nature called Equity; which depending not on the reading of other mens Writings, but on the goodnesse of a man’s own naturall Reason, and Meditation, is presumed to be in those most, that have had most leisure, and had the most inclination to meditate thereon. Secondly, Contempt Of Unnecessary Riches, and Preferments. Thirdly, To be able in judgment to devest himself of all feare, anger, hatred, love, and compassion. Fourthly, and lastly, Patience to heare; diligent attention in hearing; and memory to retain, digest and apply what he hath heard.

Here’s a Reader’s Digest version of my approach. I select mutual funds that have had a good track record of winning for more than five years, preferably for more than ten years. I don’t look at their one-year or three-year track records because I think long term. I spread my retirement, investing evenly across four types of funds. Growth and Income funds get 25 percent of my investment. (They are sometimes called Large Cap or Blue Chip funds.) Growth funds get 25 percent of my investment. (They are sometimes called Mid Cap or Equity funds; an S&P Index fund would also qualify.) International funds get 25 percent of my investment. (They are sometimes called Foreign or Overseas funds.) Aggressive Growth funds get the last 25 percent of my investment. (They are sometimes called Small Cap or Emerging Market funds.) For a full discussion of what mutual funds are and why I use this mix, go to daveramsey.com and visit MyTotalMoneyMakeover.com. The invested 15 percent of your income should take advantage of all the matching and tax advantages available to you. Again, our purpose here is not to teach the detailed differences in every retirement plan out there (see my other materials for that), but let me give you some guidelines on where to invest first. Always start where you have a match. When your company will give you free money, take it. If your 401(k) matches the first 3 percent, the 3 percent you put in will be the first 3 percent of your 15 percent invested. If you don’t have a match, or after you have invested through the match, you should next fund Roth IRAs. The Roth IRA will allow you to invest up to $5,000 per year, per person. There are some limitations as to income and situation, but most people can invest in a Roth IRA. The Roth grows tax-FREE. If you invest $3,000 per year from age thirty-five to age sixty-five, and your mutual funds average 12 percent, you will have $873,000 tax-FREE at age sixty-five. You have invested only $90,000 (30 years x 3,000); the rest is growth, and you pay no taxes. The Roth IRA is a very important tool in virtually anyone’s Total Money Makeover. Start with any match you can get, and then fully fund Roth IRAs. Be sure the total you are putting in is 15 percent of your total household gross income. If not, go back to 401(k)s, 403(b)s, 457s, or SEPPs (for the self-employed), and invest enough so that the total invested is 15 percent of your gross annual pay. Example: Household Income $81,000 Husband $45,000 Wife $36,000 Husband’s 401(k) matches first 3%. 3% of 45,000 ($1,350) goes into the 401(k). Two Roth IRAs are next, totaling $10,000. The goal is 15% of 81,000, which is $12,150. You have $11,350 going in. So you bump the husband’s 401(k) to 5%, making the total invested $12,250.

Admittedly, though, the temptation to ignore race in our advocacy may be overwhelming. Race makes people uncomfortable. One study found that some whites are so loath to talk about race and so fearful of violating racial etiquette that they indicate a preference for avoiding all contact with black people. The striking reluctance of whites, in particular, to talk about or even acknowledge race has led many scholars and advocates to conclude that we would be better off not talking about race at all. This view is buttressed by the fact that white liberals, nearly as much as conservatives, seem to lave lost patience with debates about racial equity. Barack Obama noted this phenomenon in his book, The Audacity ofHope: :Rightly or wrongly, white guilt has largely exhausted itself in America; even the most fair-minded of whites, those who would genuinely like to see racial inequality ended and poverty relieved, tend to push back against racial victimization-or race-specific claims based on the history of race discrimination in this country.

Shareholders have a residual claim on a firm’s assets and earnings, meaning they get what’s left after all other claimants—employees and their pension funds, suppliers, tax-collecting governments, debt holders, and preferred shareholders (if any exist)—are paid. The value of their shares, therefore, is the discounted value of all future cash flows minus those payments. Since the future is unknowable, potential shareholders must estimate what that cash flow will be; their collective expectations about the future determine the stock price. Any shareholders who expect that the discounted value of future equity earnings of the company will be less than the current price will sell their stock. Any potential shareholders who expect that the discounted future value will exceed the current price will buy stock. This means that shareholder value has almost nothing to do with the present. Indeed, present earnings tend to be a small fraction of the value of common shares. Over the past decade, the average yearly price-earnings multiple for the S&P 500 has been 22x, meaning that current earnings represent less than 5 percent of stock prices.

where his blueprint called for retooling his research and development functions, the target was clear: new products should account for 20 percent of the company’s portfolio each year, and all products needed to score a minimum 60-40 preference among relevant consumers versus competitor products, and offer a better nutritional profile.

The criteria that I found most valuable when making my decisions were the following: What is the size of the investor community invested in other offerings on the platform to-date? Does the platform accept investments via credit card? For example, about 40% of my crowdfunding investors invested with a credit card. Does the platform allow for campaign extensions (if you fall short of your goal within your campaign period, can you extend the campaign until you reach your goal)? I’ve extended my campaigns multiple times. Does the platform allow for multiple disbursements? I prefer to disburse money from my campaign once a month. However, many platforms don’t allow you to disburse the funds until after the campaign is over What are the fees? Platforms can charge between 5-20% of your raise as fees, with some platforms having complicated fee structures that involve taking some of your Securities as part of the offering. Some platforms require you to pay them cash upfront before launching an offering. Does the platform allow you to set your own terms? For example, some platforms don’t allow you to sell convertible notes. Some others don’t allow you to sell non-voting common stock. Some platforms insist that they set the valuation for your startup in order to launch—the logic being that they know their investors, and they want to provide them with a “good deal.” For many reasons, you want to sell the Security that’s right for your startup. Does the platform allow you to have design freedom on the campaign page? You want to make sure that your brand is well represented. The aesthetics and optimization of the page are highly correlated with conversion (how many people invest after visiting your page). Does the platform support analytics? You need advanced analytics to market your offering. Some platforms, for example, allow you to enter a Facebook Pixel and Google Analytics code into the campaign page, while others do not. Does the platform have a good reputation? You will be driving a lot of potential investors and media folks to this platform, and you want to be sure that your platform of choice hasn’t been involved in anything shady in the past. Does the platform allow you to update your investors and prospective investors with campaign notifications? Some platforms have a built-in functionality where you can post updates right on the campaign, download email, and mailing contact lists of your investors (allowing you to contact them by email and allowing you to build Facebook “lookalike audiences”). Whereas, other platforms don’t even share the email addresses of the folks who have already invested in your startup. Does the platform support or plan to support secondary trading for the Securities that it sells on its platform? Will your investors be able to sell the Securities that they buy from you? The ability to sell Securities in a marketplace brings a lot of liquidity and increases its value significantly. In order to allow for secondary trading, the platform needs to obtain an Alternative Trading System (ATS) approval from FINRA.

TABLE 1-2 Assessment of problem preferences Assess your intrinsic interest in solving problems in each of these domains on a scale of 1 to 10, where 1 means very little interest and 10 means a great deal of interest. Design of appraisal and reward systems __________ Employee morale __________ Equity/fairness

Unlike debentures, the 15.7 million dollars of participating preferred shares did not require repayment on a particular date. Effectively, International Match had shifted from a strict debt obligation to a more flexible equity obligation.

Preference shares will almost always be classified as liabilities, rather than equity, and so preference dividends constitute part of the finance cost.

We prefer: large purchases (at least $5 million of after-tax  earnings), demonstrated consistent earning power (future projections are of little interest to us, nor are “turn-around” situations), businesses earning good returns on equity while employing little or no debt, management in place (we can’t supply it), simple businesses (if there’s lots of technology, we won’t understand it), an offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

If a 20% or 30% drop in the market value of your equity holdings (such as BPL) is going to produce emotional or financial distress, you should simply avoid common stock type investments. In the words of the poet—Harry Truman—“If you can’t stand the heat, stay out of the kitchen.” It is preferable, of course, to consider the problem before you enter the “kitchen.

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

It can feel as if we’re giving up our own values or giving in to the other person’s preferences. The reality is, it’s not giving up but adding on.

In basic microeconomics textbooks, even when welfare gets attention, it is in the domain of efficient outcomes. Redistribution through taxes is first introduced as a big ‘no go’ domain with concepts of deadweight loss. However, inefficiency out of market behaviour and market outcomes is plainly ignored and overlooked. Approximately, $600 million daily is needed to feed every extremely poor person, yet about $2.75 billion value of food is wasted every day, according to Food and Agriculture Organization. Consequently, 9 million people die every year from hunger while one-third of all food is wasted. This gross inefficiency in economic resources is not captured or discussed. According to Food and Agriculture Organization of the United Nations, globally, per capita food supply increased from about 2,200 kcal per day in the early 1960s to more than 2,903 kcal per day by 2014. But under capitalism, the market allocates goods including even food to only those who can pay its price. It does not make a difference whether the willingness to pay is less than the price due to ‘preference’ or due to ‘poverty’. Yet, mainstream economics claims consumer sovereignty.

difference between equity share and preference share

For the price of a few battleships, we could give you a healthy nation. We have the knowledge, the skill, the material resources; but those in power prefer to use them for destroying their competitors and safeguarding their own profits.

In addition to casting our net for firms with a high ROIC, we are also looking for firms with a low Faustmann ratio, meaning a low market capitalization (of common equity) over net worth (or invested capital plus cash minus debt and preferred equity) ratio.

Deal-by-deal carry (with loss carry-forward): Also known as an American-style waterfall, this structure entitles a GP to carried interest after each profitable exit from a portfolio investment during the fund’s life, but only after investors have received their invested capital from the deal in question, a preferred return and a “make whole” payment for any losses incurred on prior deals.

Anyone who prefers owning a part of your company to being paid in cash reveals a preference for the long term and a commitment to increasing your company’s value in the future. Equity can’t create perfect incentives, but it’s the best way for a founder to keep everyone in the company broadly aligned.

Here we encounter the second a priori truth: health disparities are the product of systemic racism; any other explanation is taboo and will be as ruthlessly punished as the questioning of admissions preferences.

Islamic philosophy of life prioritizes equitable distribution over efficiency. Overreliance on efficiency paralyses the equity and ethical concerns of development policy change. While Islamic principles allow freedom and liberty in lawful consumption within the moral boundaries, they induce affirmative action to promote well-being when people possess the means. In contrast, according to consumer sovereignty, as long as people can put up dollar votes for their preferences, resources will be allocated on producing, marketing and distributing inessential goods even if a quarter of the world population lives in poverty and suffers from hunger, malnourishment and curable diseases.

people often find equity unattractive. It’s not liquid like cash. It’s tied to one specific company. And if that company doesn’t succeed, it’s worthless. Equity is a powerful tool precisely because of these limitations. Anyone who prefers owning a part of your company to being paid in cash reveals a preference for the long term and a commitment to increasing your company’s value in the future. Equity can’t create perfect incentives, but it’s the best way for a founder to keep everyone in the company broadly aligned.

Page 110: The change from color-blind civil rights to color-conscious racial preferences took place very quickly. In his Howard University commencement speech of June 4, 1965, President Johnson expressed the color-blind liberal vision by calling for “not just legal equity but human ability” to be promoted by jobs, housing, and “welfare and social programs better designed to hold families together.” On August 5, he signed the Voting Rights Act. On August 11, the Watts riot broke out. … The Civil Rights Revolution, far from assuaging black discontent, seemed to have triggered its violent expression

Universities promote diversity. On April 24, 1997, 62 research universities led by Harvard bought a full-page advertisement in the New York Times that justified racial preferences in university admissions by explaining that diversity is a “value that is central to the very concept of education in our institutions.” Lee Bollinger, who has been president of the University of Michigan and of Columbia, once claimed that diversity “is as essential as the study of the Middle Ages, of international politics and of Shakespeare.” Many companies and universities have a “chief diversity officer” who reports directly to the president. In 2006, Michael J. Tate was vice president for equity and diversity of Washington State University. He had an annual budget of three million dollars, a full time staff of 55, and took part in the highest levels of university decision-making. There were similarly powerful “chief diversity officers” at Harvard, Berkeley, the University of Virginia, Brown, and the University of Michigan. In 2006, the University of Wisconsin at La Crosse decided that diversity was so important that its beneficiaries—students—should pay for it. It increased in-state tuition by 24 percent, from $5,555 to $6,875, to cover the costs of recruitment to increase diversity.

Figuring out how to allocate your assets doesn’t need to be difficult. Obviously, as my grandmother liked to remind me, you don’t want to keep all your eggs in one basket. But how do you know what proportion of your nest egg should be invested in equities vs. fixed-income securities? There are all sorts of ways to calculate this. For my part, I prefer the following simple rule of thumb. Take your age and subtract it from 110. The number you get is the percentage of your assets that should go into equities; the remainder should go into bonds or other fixed-income investments.