Equity Warrants, Explained: The Lender's Kicker and the Investor's Sweetener
A warrant lets a lender buy your shares later at today's price — coverage runs 5–20% of the loan, and dilution lands only on exercise.
#equity-instruments
Equity Instruments
Understanding stock, SAFE notes, convertible notes, and startup financing structures
Took the YC Standard Deal? Why Your Accelerator SAFE Books Differently Than Your Seed SAFEs
YC's standard deal pairs a fixed-7% SAFE with a floating MFN claim — book them separately and re-model the MFN every time you sign a new SAFE.
Redeemable Preferred Stock and Temporary Equity, Explained: Why Shares the Holder Can Put Back to You Sit Between Debt and Equity
Preferred shares the holders can put back sit in temporary equity, not equity — and quarterly accretion shrinks earnings available to common stock.
The Two-Class Method for EPS, Explained: How Earnings Get Split Between Common Stock and Participating Securities
Participating securities take their cut before EPS is computed — declared dividends first, then undistributed earnings pro rata by participation rights.
Anthropic IPO Filing: Q3 Compute Grew Faster Than Revenue, With $895B Committed
Anthropic's S-1/A shows Q3 revenue up 47% to $16.96B while compute rose 77%, turning a profit into a $567M operating loss against $895B of signed commitments.
The Gordon Growth Model, Explained: How One Formula Values a Dividend Stock
A dividend stock is worth next year's dividend divided by required return minus growth — the Gordon Growth Model, plus the two-stage fix.
Stock Issuance and Offering Costs, Explained: Why Your IPO Fees Reduce Paid-In Capital Instead of Hitting Your P&L
Equity offering costs reduce additional paid-in capital, never earnings; debt issuance costs amortize into interest expense. Entries, authorities, and mistakes.
Participating vs. Non-Participating Preferred Stock: How the Double Dip Decides Your Exit Payout
Participating preferred pays investors twice — preference first, then a pro-rata share. Non-participating pays only the greater of the two.
Recapitalizations, Explained: How Companies Reshape Debt and Equity Without Changing the Business
A recapitalization swaps debt for equity — or equity for debt — to cut risk, fund a buyout, or take cash out without selling the company.
Authorized vs. Issued vs. Outstanding Shares: What Each Count Means for Your Valuation, Your EPS, and Your Vote
Outstanding shares equal issued shares minus treasury stock — the only count that sets market cap, EPS, dividends, and votes.
Basic vs. Diluted EPS, Explained: What Each Share of Earnings Is Really Worth After Options, Warrants, and Convertible Debt
Diluted EPS assumes every option, warrant, and convertible note becomes shares; it is the worst-case number — value the company on it, not on basic EPS.
Cumulative Preferred Stock and Dividends in Arrears, Explained: How Missed Dividends Pile Up, Why Arrears Must Clear Before Common Holders See a Dollar, and Why They Stay a Footnote Until the Board Declares
Skipped cumulative preferred dividends stack up as arrears that must clear before common holders see a dollar — yet stay a footnote until declared.