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Capital structure

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In stories about the auto companies and the banks, we've been hearing about debt-to-equity swaps and exchanging preferred shares for common stock. To understand how those work, you need to understand a company's capital structure. Senior Editor Paddy Hirsch explains.

About the author

Paddy Hirsch is the Senior Producer, Personal Finance at Marketplace and the creator and host of the Marketplace Whiteboard. Follow Paddy on Twitter @paddyhirsch and on facebook at www.facebook.com/paddyhirsch101
efipm's picture
efipm - Mar 4, 2013

Inspired by Paddy's airplane capital structure analogy, below is a video explainer of CoCos (Contingent Convertibles) with a train capital structure analogy.
http://efipyl-efi.blogspot.gr/2013/03/contingent-convertible-claims-coco...

telisi john's picture
telisi john - Jan 12, 2010

Excellent. Big Up to Paddy Hirsh! Thank You very much for making things so simpler and easy to undertsnad to an average joe like me than those people on CNBC. I have learned so much in just few minutes just by watching these videos. Now, could/would you do one on option trading and tax implications(captial gain/loss) on mutiple trading, please?

Anthony Lopez's picture
Anthony Lopez - Aug 10, 2009

Could you (Paddy Hirsch) do a lesson on options trading?

Nancy Guerin's picture
Nancy Guerin - May 11, 2009

I am in love with Paddy Hirsch! Seriously, Paddy does an outstanding job of explaining complex structures and transactions in a way everyone can understand. Kudos to Paddy and Marketplace! His whiteboard presentations demonstrate how well he understands the arcane world of corporate finance. Thanks again for well conceived explanations.

Adam Smith's picture
Adam Smith - May 10, 2009

All this mess is the folly of Bush and Neo Cons in Iraq. Understand this mess but also the mess created by the lies and deceptions of Neo Cons in Iraq and Afghanistan.

paddy hirsch's picture
paddy hirsch - May 9, 2009

Hi Andrew
I hope all is going well with you in Iraq. I don't know if you're reading up on this for a specific course of study or just to inform yourself about what's going on with the economy, but if there's anything I can do, please let me know.
I'd like to express my support and appreciation to you and to all your comrades-in-arms.
Keep your head down out there.
paddy

Andrew Russ's picture
Andrew Russ - May 9, 2009

I am deployed to Iraq and have been trying to make sense of what's going on through reading and my own study. These videos have explained so much more about what I have been reading about and help me get more out of my other studies. Thank you so much for these...I'm hooked.

Dan Usiskin's picture
Dan Usiskin - May 8, 2009

Paddy Hirsch is a pro-simplifying the complex issues of finace and wall street the scare the hell out of most.