{"id":1931,"date":"2019-06-15T17:35:00","date_gmt":"2019-06-15T17:35:00","guid":{"rendered":"https:\/\/analystprep.com\/cfa-level-1-exam\/?p=1931"},"modified":"2026-03-09T20:58:29","modified_gmt":"2026-03-09T20:58:29","slug":"role-equity-securities","status":"publish","type":"post","link":"https:\/\/analystprep.com\/cfa-level-1-exam\/equity\/role-equity-securities\/","title":{"rendered":"Role of Equity Securities"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"VideoObject\",\n  \"name\": \"Overview of Equity Securities (2025 Level I CFA\u00ae Exam \u2013 Equity \u2013 Module 4)\",\n  \"description\": \"This video lesson covers equity securities in the CFA Level I curriculum. It explains the characteristics of various equity types, differences in ownership and voting rights, private vs. public equity, international investments, equity risk\/return profiles, valuation methods, and the role of equity in financing and investor return expectations.\",\n  \"uploadDate\": \"2022-05-11T00:00:00+00:00\",\n  \"thumbnailUrl\": \"https:\/\/img.youtube.com\/vi\/dzzqUd0SqtQ\/maxresdefault.jpg\",\n  \"contentUrl\": \"https:\/\/www.youtube.com\/watch?v=dzzqUd0SqtQ\",\n  \"embedUrl\": \"https:\/\/www.youtube.com\/embed\/dzzqUd0SqtQ\",\n  \"duration\": \"PT36M43S\"\n}\n<\/script>\n\n\n\n<iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/dzzqUd0SqtQ?si=5kEJnm7qsNSgfshX\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n\n\n<p>Companies issue equity securities in the primary markets to raise capital and increase liquidity. Having public shares also gives the company another currency to make acquisitions with or incentivize employees.<\/p>\n<p>Raising capital aims to maximize shareholder wealth, which may be done through financing the purchase of long-lived assets, capital expansion projects, research and development, and\/or the entry into a new product or geographic region. In some rare cases, capital is raised only to keep a company operating as a going concern.<\/p>","protected":false},"excerpt":{"rendered":"<p>Companies issue equity securities in the primary markets to raise capital and increase liquidity. Having public shares also gives the company another currency to make acquisitions with or incentivize employees. Raising capital aims to maximize shareholder wealth, which may be&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1931","post","type-post","status-publish","format-standard","hentry","category-equity","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Role of Equity Securities | CFA Level 1 - AnalystPrep<\/title>\n<meta name=\"description\" content=\"Equity securities help companies raise capital and provide investors with ownership stakes, potential dividends, and capital appreciation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/analystprep.com\/cfa-level-1-exam\/equity\/role-equity-securities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Role of Equity Securities | CFA Level 1 - 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