The top dog business office of primary working capital alphabetic lineament marketplace is to heighten funds through consequence of novel corporate securities. The venture which issues securities may move novel or old. This involves attracting novel investible resources inwards the corporate sector as well as their allotment amidst choice uses as well as users.
Types of Securities
Business enterprises heighten their working capital alphabetic lineament past times consequence of next 3 top dog types of securities.
- Ordinary or Equity Shares
- Preference Shares and
- Debentures / Bonds
1. Ordinary or Equity Shares : These are the shares which confers ownership to the holders. Ordinary shareholders are the owners of the company. The investment inwards this working capital alphabetic lineament musical instrument is permanent but they are highly liquid.
2. Preference Shares : These are the shares carrying preference inwards payment of dividend as well as working capital alphabetic lineament at the fourth dimension of winding upward of the companionship over equity shares. This carries fixed charge per unit of measurement of furnish called dividend. Preference portion may by
- Cumulative or non cumulative
- Redeemable or Non-Redeemable
- Participating or Non-Participating
3. Debentures / Bonds : Unlike shares, debentures are creditorship securities. These are exactly credit instruments as well as does non confer whatever ownership. They comport a fixed charge per unit of measurement of involvement fixed maturity catamenia Debentures may be
- Registered or bearer
- Redeemable or perpetual
- Convertible or non convertible or partly convertible
Thats all for straightaway friends. In our adjacent postal service nosotros shall hash out close th Secondary Capital Market (Stock Exchanges). Happy Reading 🙂