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What are the ways by which business organization raise capital?
1.SALES OF SHARES: shares are sold to the public and the proceeds becomes part of the company's capital 2. DEBENTURES: This is a loan raised from the public with a fixed interest rate. 3.TRADE CREDIT: buying raw materials etc. On credit 4.Bank loan and overdraft. 5.PLOUGHED BACK PROFIT: Reinvesting part of profits made. POSTED BY MOHAMED DAINKEH.
What is share capital and how raising share capital?
Share capital is the investment in company from public to earn profit and it can be raised by offering shares to public for purchase.
What Advantages does issue of debentures over equity shares?
Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.
What are registered debentures?
Certain debentures are made out in the names of the particular persons whose names appear in the register of debenture holders. Such debentures which appear in this register are known as "Registered Debentures". They are transferable in the same way as shares. Interest as well as the debenture amount in these cases is payable only to the registered holders.
Joint-stock companies raised money through the sale of in each company?
stocks or shares
Four components of capital structure?
the components of capital structure(CS) includes: 1. CS with equity sahres only. 2. CS with equity and preference shares. 3. CS with equity and debentures. 4. CS with equity shares, preference shares and debentures.
Sources of long term working capital?
•Equity shares •Debentures •Retained earnings •Public deposits
What does all-equity mean?
The meaning of an all-equity firm is one that has raised its entire capital through the sale of shares. This is form of raising capital is known as equity financing.
What are the ways by which business organization raise capital?
1.SALES OF SHARES: shares are sold to the public and the proceeds becomes part of the company's capital 2. DEBENTURES: This is a loan raised from the public with a fixed interest rate. 3.TRADE CREDIT: buying raw materials etc. On credit 4.Bank loan and overdraft. 5.PLOUGHED BACK PROFIT: Reinvesting part of profits made. POSTED BY MOHAMED DAINKEH.
What is share capital and how raising share capital?
Share capital is the investment in company from public to earn profit and it can be raised by offering shares to public for purchase.
What is capital subscription?
a public company can raise the required funds from the public by means of issue of shares and debentures. for doing the same,it has to issue a prospect which is an invitation to public to subscription to the capital of the company and undergo varous other formalities
What Advantages does issue of debentures over equity shares?
Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.
What are three other names for shares?
Ordinary and preference shares debentures securities also things like equity stock etc.
What is the definition of 'Capital Surplus'?
Capital Surplus is an accounting term, which may be referred to as Additional paid in capital. This is the additional amount over par value of the shares that is raised by a company.
What is trade on equity?
A company may raise funds either by issue of shares or by debentures. Borrowing funds to increase capital investment with the hope that the business will be able to generate returns in the excess of the interest charges.
Under what conditions may the directors of acompany prefer to issue ordinary shares rather than debentures?
ordinary shares are equity whereas debentures are debt - debt is always payable, whereas, equity holders do not always necessarily demand a dividend payment immediately. it would depend on what the company wanted to use the funds for. if the funds were used to fund a project where the returns were not expected for a few years, a company may wish to issue shares rather than debentures as the debentures would have to be paid regardless of when the returns came.
What are registered debentures?
Certain debentures are made out in the names of the particular persons whose names appear in the register of debenture holders. Such debentures which appear in this register are known as "Registered Debentures". They are transferable in the same way as shares. Interest as well as the debenture amount in these cases is payable only to the registered holders.
