Complex Securities Valuations: Your Go-to Guide
In today’s ever-evolving financial landscape, the investment universe has expanded beyond traditional stocks and bonds to include a wide array of complex securities . These instruments, such as earnouts, exotic options, phantom shares, rollovers, SAFEs and hybrid financial interests, provide unique advantages, but can also be difficult to accurately value. This blog will discuss the complexities that one needs to be aware of for Complex Securities Valuations , along with the methods, considerations, and risks associated with it. Understanding the realm of Complex Securities: Complex securities are financial instruments or assets with intricate and often non-standard features or structures. Some of these instruments can result in non-standard payouts and may incorporate various elements to meet specific investment objectives or risk profiles. These types of assets are becoming increasingly popular among corporates and startups for fund-raising, employee...