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Investors and Other Stakeholders

2024 Curriculum CFA Program Level I Corporate Finance

Overview

Corporate issuers are financed with debt and equity. Debt and equity securities have different risk and return profiles for both issuers and investors. This learning module discusses these differences and their implications, while also considering the perspectives of a broader group of stakeholders beyond debtholders and shareholders. We introduce these groups and discuss potential conflicts of interest among them. Balancing stakeholder interests is important, as both issuers and investors have increasingly incorporated environmental, social, and governance factors into their decision-making processes. Analysts assess ESG factors to better evaluate issuers’ expected future performance and risk profile.

1 PL Credit

If you are a CFA Institute member don’t forget to record Professional Learning (PL) credit from reading this article.