Before you watch

In these recorded lectures, I describe how entrepreneurs raise equity capital to finance the start and early growth of their businesses, and then raise capital on public markets through initial public offerings and seasoned equity offerings. I also detail how and why capital markets have become the dominant source of corporate financing worldwide.

Part 1: We examine how private companies raise external equity capital.
Part 2: We survey the rise of global capital markets over the past quarter-century. In addition, I detail the massive growth in the scale, scope and technical efficiency of debt and equity markets.
Part 3: I describe how and why corporations access public equity markets through initial public offerings (IPOs). I note the surprising, and pervasive, patterns observed for the returns IPO investors earn worldwide, both in the short term (positive) and long term (negative) after listing.
Part 4: Finally, we discuss how corporations raise additional capital with seasoned equity offerings (SEOs).

Study Tip: Print off the lecture slides for Raising Capital Equity and take notes as you watch. Then use your notes to help you answer the "Check Yourself" questions that follow the videos.

Video

Check Yourself

Check your understanding with these questions:

Should companies rely on angel capital before accessing venture capital?
How common is it for external equity investors to want to exit their private company investment by selling shares on public capital markets or privately in an acquisition?
How big of a role does capital market finance play in corporate finance for large businesses today?
Given that "going public" is expensive and time-consuming, why do many companies still choose to execute IPOs?
Besides standard SEOs, what other alternatives are there for raising capital?