Capital Markets and Capital Structure

IR Competency Framework Domain 8

This module explores key concepts related to capital markets and capital structure and examines associated responsibilities of the IR professional. It provides a high-level overview of the capital markets “big picture” and explores what the IR professional must understand about company funding and capital structure, including debt and equity characteristics, the cost of capital, the role of risk, and effective capital allocation. It also examines what the IR professional must know about how companies and stocks are valued, including basic valuation concepts and models, in order to understand the company’s capital structure relative to peers and be able to explain possible variations in valuation.

Learning Objectives:

• Summarize key features of capital markets
• Describe basic principles of capital structure
• Identify drivers of stock and market valuation
• Explain capital allocation considerations

This module is part of the IR Competency Suite™. IRC credential holders can claim 1 professional development unit (PDU) for completion of each module.