• Understand the basic rights of preference shareholders, the features of preferences shares and the advantages and disadvantages of preference share financing
• Describe the general features of convertible debentures and illustrate the procedure for determining the value of both optionally convertible debentures and compulsorily convertible debentures
• Explain the basic characteristics of warrants, the implied price of a warrant and the value of a warrant—theoretical, market and warrant premium
• Define option and explain call and point option
