Investors and Other Stakeholders (2025 CFA® Level I Exam – Corporate Issuers – LM2)

Master Investors and Other Stakeholders for the CFA® Level I Corporate Issuers exam. In this lesson, Professor James Forjan explains the differences between bondholders and shareholders, their financial claims, risk and return, leverage, corporate governance, stakeholder groups, and ESG considerations. You’ll learn how debt and equity investors differ in their claims, how bondholders and shareholders respond to risk, why leverage can increase both returns and losses, and how bond covenants protect bondholders. The lesson also covers stakeholder theory, board structures, corporate governance, and the role of ESG in corporate decision-making. What You’ll Learn: ✓ Understand the differences between bondholders and shareholders ✓ Compare explicit and vague financial promises ✓ Understand bondholder claims, interest payments, and principal repayment ✓ Understand shareholder claims, dividends, capital gains, and residual claims ✓ Compare the risk and return profiles of debt and equity ✓ Understand the beauty and ugliness of leverage ✓ Understand default risk and loss given default ✓ Understand the role of credit ratings in assessing debt risk ✓ Compare bondholder and shareholder interests ✓ Understand positive and negative bond covenants ✓ Understand bond indentures and sinking fund provisions ✓ Identify major corporate stakeholder groups ✓ Understand shareholder theory and stakeholder theory ✓ Understand the role of investors, creditors, suppliers, employees, managers, and governments ✓ Understand the role of the board of directors ✓ Compare different board structures and voting systems ✓ Understand staggered boards and corporate control ✓ Understand environmental, social, and governance (ESG) considerations ✓ Evaluate how ESG decisions can affect corporate costs, risks, and performance Chapters: 00:00 Introduction to Investors and Other Stakeholders 04:56 Bondholders 10:51 Summary of Bondholders and Shareholders 11:08 Risk 13:11 Value of the Firm 16:40 Bondholder Claims and Shareholder Gains 18:23 The Beauty and Ugliness of Leverage 24:52 Risk-Return Profile 26:59 Bondholders and Shareholders 30:37 Bond Indenture and Covenants 31:40 Stakeholder Groups 33:55 Shareholder Theory vs. Stakeholder Theory 37:45 ESG and Stakeholder Objectives 39:15 Shareholders and Bondholders 41:07 Board of Directors 43:49 Board Structure and Governance 45:00 Staggered Boards 47:09 Other Stakeholder Groups 48:36 ESG Considerations 52:17 ESG Costs, Benefits, and Financial Impact Prep Packages for the CFA® Program offered by AnalystPrep (study notes, video lessons, question bank, mock exams, and much more): CFA Level I:https://analystprep.com/shop/cfa-leve... CFA Level II:https://analystprep.com/shop/cfa-leve... CFA Level III:https://analystprep.com/shop/cfa-leve... Follow AnalystPrep for more CFA® and finance education content: Facebook:   / analystprep   Instagram:   / analyst_prep   LinkedIn:   / analystprep   #CFA #CFALevel1 #CFAExam #CorporateIssuers #Bondholders #Shareholders #Stakeholders #CorporateGovernance #ESG #Leverage #CreditRisk #BondCovenants #AnalystPrep