Describe cash versus stock dividends, record that a stock dividend alone transfers no value, and contrast the uncertain size and timing of both payoffs with a bond's promised coupons.
2
Residual claimant versus the capped bondholder claim
Set out the order of claims on corporate assets and compare the bondholder's capped upside with the equity holder's uncapped upside, using the entrepreneur-versus-bondholder returns contrast.
3
Limited liability as a floor on losses
State that the most an equity holder can lose is the amount put in, contrast it with pre-corporation unlimited liability, and record its link to serial entrepreneurs and capital formation.
4
Public markets, voting rights and short sales
Record how public markets pool capital for ventures too large for a few investors, what votes give shareholders, and how short selling lets negative information reach the price in the classroom exercise.