What Is Dilution Protection?

Dilution protection is a measure taken by a company to protect its shareholders from having their ownership stake diluted by the issuance of new shares. This can be done by issuing new shares only to existing shareholders, or by giving existing shareholders the right to buy new shares before they are issued to the public. … Read more

What Is Capital Risk?

Capital risk refers to the potential loss of capital, either through investment or loan default. It is the risk that an investment will lose its value, or that a loan will not be repaid. Capital risk is often divided into two categories: market risk and credit risk. Market risk is the risk that an investment … Read more

What Is an International Depository Receipt (IDR)?

An international depository receipt (IDR) is a negotiable instrument that represents ownership of foreign securities held by a custodian bank or depository. IDRs are traded on a local stock exchange and provide foreign investors with a way to invest in foreign companies without having to go through the process of directly buying and selling the … Read more