What is a Complex Capital Structure?
Complex capital structures involve the creation of a multi-faceted series of securities that provide the financial basis for the stability of a company. Rather than relying strictly on stock and straight debt as the foundation for the fiscal well being of the corporation, a complex capital structure will diversify the range of stocks, bonds, and options offered as part of the overall securities approach. This diversity allows the corporation the option of diluting some securities if current conditions merit that action. When it comes to the matter of stock within a complex capital structure, the key element is to provide a range of both preferred and common stock option. In general, a complex capital structure will call for segregating the common stock offered by the company into several classes. This creates several levels of investment by offering shares that carry certain advantages over the ownership of other classes of the common stock. For example, a company may choose to issue b
