All securites are a form of loaning money to a company. def. Capital Structure. Order of payouts when company goes Bankrupt.

  • Loans
  • Fixed Income
    • Bonds: No voting rights, 1st seniority cap structure, fixed interest
  • Equity
    • Preferred Shares: limited voting, 2nd seniority cap structure, fixed dividends (mostly)
    • Common Shares: full voting, last seniority cap structure, unknown dividends
  • Derivatives
  • Structured Products

Basically capital to be valorized. Interest is surplus value.