Capital is money companies raise for long-term business investments and expenses. Long-term financing and investor equity are the two primary sources of capital. The optimum balance is referred to as ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

A number of developments in the past few years have dramatically changed the framework for evaluating capital structure alternatives for U.S. insured depository institutions of all sizes. First, the ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

Capital structure is a term that describes the proportion of a company’s capital, or operating money, that is obtained through debt versus the proportion obtained through equity. Debt includes loans ...

After working in consulting, venture capital and private banking, Matthias focuses on e-commerce-M&A with his ESER Capital VV GmbH. Mergers and acquisitions have become a common strategy for ...

Antill, Samuel, and Steven R. Grenadier. "Optimal Capital Structure and Bankruptcy Choice: Dynamic Bargaining vs Liquidation." Journal of Financial Economics 133, no. 1 (July 2019): 198–224.

Fruhan, William E., Jr. "Note on the Theory of Optimal Capital Structure TN." Harvard Business School Teaching Note 292-047, January 1992.