Equity Investments query !

dee5.v
Good Student
Posts: 14
Joined: Wed Aug 29, 2012 5:39 pm

Equity Investments query !

Postby dee5.v » Mon Sep 03, 2012 4:05 pm

Hello,

Why are callable common shares beneficial to the firm, especially if it can reissue the same at a higher price ?
what kind of benefits do the firms derive ?


Regrds,

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content.pristine
Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

Re: Equity Investments query !

Postby content.pristine » Fri Nov 02, 2012 6:05 pm

The call option belongs to the issuing company.
This is beneficial for the firm, especially if prices go up.
8-)


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