PBS
A Short Explanation of Short Selling (feat. @ThePlainBagel)
Betting on a stock's failure can be a risky business, as GameStop short-sellers learned in January 2021.
Professor Dave Explains
The Functions of Modern Banks
Now that we are talking about personal economics, we need to discuss the purpose of banks. Unless you're hoarding cash in your mattress, you need a bank for the safekeeping of your funds. What does a bank do? What are checking accounts,...
PBS
The Best Way to Apply for Student Aid!
Whether you're in college, going to college, or have kids that will go to college, how you go about applying for financial aid can make the difference between a full ride and a lifetime of debt!
The Business Professor
Issued, Outstanding, and Fully Diluted Shares
What are Issued, Oustanding, and Fully Diluted Shares of Stock? Outstanding shares are the company's stock that has been authorized and issued. Outstanding shares represent investor or institutional ownership of the company. Fully...
The Business Professor
Investor Presentation - Capital and Valuation
How do you present the capital structure and valuation in an investor presentation? Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth.
The Business Professor
Investor Pitch - Format & Content
What is the Format and Content of an Investor Presentation? It covers key points of your business such as your vision, market opportunity, products and services, high-level financials and funding needs. A winning pitch deck needs to be...
The Business Professor
High-Performing Teams (Characteristics)
What is a High-Performing Team? What are the characteristics of the high-performing team? High-performance teams is a concept within organization development referring to teams, organizations, or virtual groups that are highly focused on...
The Business Professor
Group vs Team
What is a Group? What is a Team? What is the difference between a group and a team? A group is a collection of individuals who coordinate their efforts, while a team is a group of people who share a common goal. While similar, the two...
The Business Professor
Funding from Equity Investments
What is business funding from equity investors? Equity financing is a popular way for entrepreneurs to raise money for their businesses without acquiring debt. In this form of additional capital, the company owner sells shares to equity...
The Business Professor
Founder's Stock
What are Founder's stock? Founder stock is equity ownership in a company that is granted to the company's founder or co-founders. It typically represents a direct ownership stake in the company and gives the founder voting rights and the...
The Business Professor
Forming a Startup Team
What does into forming a startup team? One common answer is that prior startup experience, product knowledge, and industry skills predict the success of a new venture.
The Business Professor
Executive Summary of a Business Plan
What is the Executive Summary in a business plan? An executive summary is a brief overview of a long document, such as a business plan, proposal, or report. It's a section that grabs readers' attention and summarizes critical information...
The Business Professor
Equity Interest for Startup Advisors
When and how does a startup grant equity interests to startup advisors? When to Grant Equity. If the startup does decide to compensate its advisors with equity, it must decide how much equity to offer. This decision is generally based...
The Business Professor
Equity Compensation for Early Employees
What is equity compensation for early employees of a startup business venture? Equity compensation is a method of non-cash payment in exchange for services to a business. Based on the role and contribution, company shares are offered in...
The Business Professor
Elevator Pitch - Startup Ventures
What is an Elevator Pitch for a Startup Venture? An elevator pitch is a brief, yet powerful, introduction to your startup. The name is derived from the idea of pitching to someone during a short elevator ride—about 30 seconds. It should...
The Business Professor
Dividend Rights of Preferred Shareholders
What are Dividend Rights of Preferred Shareholders? Preferred dividends refer to the cash dividends that a company pays out to its preferred shareholders. One benefit of preferred stock is that it typically pays higher dividend rates...
The Business Professor
Debt vs Equity - A Balance
Should a business raise money through selling equity or incurring debt? Debt financing may have more long-term financial benefits than equity financing. With equity financing, investors will be entitled to profits, and if you sell the...
The Business Professor
Crowdfunding - Explained
What is Crowdfunding? Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. Crowdfunding is a form of crowdsourcing and alternative finance.
The Business Professor
Conversion Rights - Preferred Shares
What are Conversion Rights of Preferrred Shareholders? Conversion rights refers to the shareholders ability to convert the preferred shares into common shares. Conversion rights are important as they affect the calculation of other...
The Business Professor
Contributing Intellectual Property for Equity
When do investors or founders contribute intellectual property to a startup in exchange for an ownership or equity interest? When the company is formed, the founders are typically issued common stock in the company in exchange for the...
The Business Professor
Compensation within a Startup - Cash and Equity
How should you structure Compensation within a Startup? How much debt should the company incur? How much equity should the company sell? This may include incentives on top of a base salary, so that your employees do well financially as...
The Business Professor
Common and Preferred Shares
What is the difference between Common shares and Preferred Shares? The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have...
The Business Professor
Class FF Stock
What is Class FF Stock? FF Preferred Stock is essentially common stock with a twist that allows it to be converted to preferred stock. Issued to a founder, it typically can only be converted to the round of preferred stock being sold at...
The Business Professor
Capitalizing or Funding a New Business
What are the options for funding a New Business? How does funding affect the capital structure? Retained earnings, debt capital, and equity capital are three ways companies can raise capital. Using retained earnings means companies don't...