A recent research note from Deutsche Bank, for example, suggested there was a straight trade-off between changes in bond yields and the valuation of shares, in the form of the price-earnings ratio or "multiple".
That study found that 30percentt of venture-backed companies that raised capital at Unicorn valuations provided IPO protections in the form of a ratchet.
This is a more typical offer, as mortgage perks tend to be in the form of cashback, free valuations and free legal work for borrowers who are remortgaging.
As this is coming in the form of shares, as the valuation increases, so will the donation.
For marketable securities, the priority is from Level 1 to Level 3 valuation inputs: –Level 1: In this category, "observable input" or evidence in the form of quoted prices in active markets for identical assets sets the value.
One could argue that they have created a lower cost of capital for business in the form of low bond yields and high equity valuations.
Some resources used by participants are in the form of actual costs (not charges) and do not need any valuation.
But persuading the outside world that $17bn is a reasonable valuation in loss-making form is Twitter's most remarkable achievement.
