Equity, Capital Markets and Private Finance
Equity issuance, listings, private capital, market access, pricing and investor implications.
How to study CIMA Strategic Level
Secure E3, P3 and F3 knowledge before practising integrated long-term judgement and professional communication. Static study assets do not reproduce all objective-test interactions or the pre-seen, unseen information, locked written sections and human marking of the Strategic Case Study.
Core concepts
Concept 1
Compare public and private equity routes.
Exam cue: Match funding characteristics to purpose, maturity and risk.
Concept 2
Evaluate issuance, listing and market-access decisions.
Exam cue: Include transaction cost, timing and control effects.
Concept 3
Assess pricing, dilution, control and investor communication.
Exam cue: Test market capacity and information implications.
Risk pitfalls and guardrails
Comparing funding only by headline return.
Guardrail: Check the applicable blueprint, task verb, assumptions, units, evidence provenance, stakeholder effects, residual risk and whether the conclusion follows.
Ignoring dilution and governance rights.
Guardrail: Check the applicable blueprint, task verb, assumptions, units, evidence provenance, stakeholder effects, residual risk and whether the conclusion follows.
Assuming a market price is unaffected by new information and issue structure.
Guardrail: Check the applicable blueprint, task verb, assumptions, units, evidence provenance, stakeholder effects, residual risk and whether the conclusion follows.
Memory anchors
Rights issue
An offer of new shares to existing shareholders in proportion to current holdings.
Private equity
Privately negotiated ownership capital commonly paired with governance rights and a planned exit.
Dilution
Reduction in an existing holder's ownership, control or per-share claim after new equity is issued.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A listed company offers each shareholder one new share for every five currently held at a stated subscription price. What type of issue is this?
A company has four existing shares priced at £5 each and offers one new share at £3 for every four held. Ignoring market effects, what is the theoretical ex-rights price?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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