Complex Capital Structure

complex capital structure

A corporate capital structure that contains securities other than straight debt and stock. Thus, a firm that has securities outstanding such as convertible bonds, convertible preferred stocks, options, rights, or warrants is said to have a complex capital structure. Potential dilution of earnings resulting from a complex capital structure occurs in firms that report earnings per share on a primary and a fully diluted basis.

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Complex Capital Structure

A company's capital structure that consists of anything other than (or in addition to) stock and bonds. Capital structure consists of, in brief, the vehicles by which a company raises capital in order to maintain or expand operations. A complex capital structure may consist of convertible stock, warrants, rights, or convertible bonds, among other vehicles. A company may also have a complex capital structure if it divides its common stock into more than one class.