Complex Capital Structure

DEFINITION of 'Complex Capital Structure'

The use of different forms of securities rather than relying solely on one class of common stock. A company with a complex capital structure might have a combination of several different varieties of common stock classes, with each class carrying different voting privileges and dividend rates. For example, a company with a complex capital structure might use both Class A and Class B common stock and preferred stock, as well as both callable bonds and non-callable bonds.

BREAKING DOWN 'Complex Capital Structure'

Many companies issue different classes of stock in order to attract a wider variety of investors. In addition, the diversification of common stock types allows the company to approach market conditions with more flexibility.

RELATED TERMS
  1. Multiple Capital Structure

    The classification of a company's stock and bond offerings into ...
  2. Share Class

    A designation applied to a specified type of security such as ...
  3. Classified Shares

    The separation of company equity into more than one class of ...
  4. Dual Class Stock

    The issuing of various types of shares by a single company. A ...
  5. Class Of Shares

    1. Types of listed company stock that are differentiated by the ...
  6. Dual-Class Ownership

    A type of share division in which companies issue shares that ...
Related Articles
  1. Investing Basics

    What are Class B Shares?

    Class B shares are one classification of common stock issued by corporations.
  2. Investing Basics

    Stocks Basics: Different Types Of Stocks

    There are two main types of stocks: common stock and preferred stock. Common Stock Common stock is, well, common. When people talk about stocks they are usually referring to this type. In fact, ...
  3. Mutual Funds & ETFs

    Which Fund Share Class is Best for Retirement?

    Mutual funds are a popular investment for retirement. Here's how to choose the best share class when investing in them.
  4. Investing Basics

    What is an Asset Class?

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.
  5. Professionals

    Share Class

    FINRA Series 6: Section 10 Share Class. In this section Class A, B, C and other classes of shares are discussed and deciding which is more suitable for a particular investor.
  6. Professionals

    Classes of Fund Shares

    FINRA/NASAA Series 66 Section 1 - Classes of Fund Shares. In this section class A, B, C shares and other class shares.
  7. Products and Investments

    What's Behind So Many Mutual Fund Share Classes?

    Despite the confusion they create, the number of share classes offered by mutual fund families will most likely continue to grow. Here's why.
  8. Mutual Funds & ETFs

    The ABCs of Mutual Fund Classes

    There are three main mutual fund classes, and each charges fees in a different way.
  9. Sectors

    2016's Most Promising Asset Classes

    Find out which asset classes are considered to be the most promising for generating portfolio returns and reducing volatility in 2016.
  10. Personal Wealth & Private Banking

    Top 5 Differences Between Business and First Class

    Is it worth the extra cost to fly first class instead of business class?
RELATED FAQS
  1. What is the difference between Class A shares and other common shares of company's ...

    Discover how a company can break down its common stock into multiple classes and how these classes differ from one another ... Read Answer >>
  2. Why would a company have multiple share classes, and what are super voting shares?

    Firstly, do not confuse different classes of common stock with preferred stock. Preferred shares are an entirely different ... Read Answer >>
  3. What is the difference between Berkshire Hathaway's Class A and Class B shares?

    Learn why Warren Buffet created Berkshire Hathaway Class B shares and discover the main differences between Class A and Class ... Read Answer >>
  4. Is the upfront cost of Class A mutual fund shares worth it?

    Learn about the differences between mutual fund share classes, and discover under what circumstances the Class A shares make ... Read Answer >>
  5. How are a mutual fund's C shares different from A and B shares?

    Learn how a class C share differs from a class A or B share in relation to a mutual fund. Read Answer >>
  6. Can preferred stocks be traded like common stocks? Are their prices the same?

    First, let's look at the differences and similarities between common stocks and preferred stocks. Both represent a piece ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center