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The odd man out is "equity share." While preference shares, debentures, and derivatives are financial instruments that typically offer fixed returns or specific rights, equity shares represent ownership in a company and provide shareholders with voting rights and potential dividends based on company performance. In contrast, preference shares and debentures are more focused on fixed income and priority in claims, while derivatives are contracts based on the value of underlying assets.
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Why preference share is known as Hybrid security?
Pref. Share are combination of equity & debt. They receives interest like bond. And treated as capital stock in b/s. It can be converted into equity or debenture thats why it's called hybrid security
How can a company rise capital?
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
Who will paid first debenture holders or preference share holders?
Debenture holders will get preference over preference shareholders
Can a debenture be shared between two lenders?
Yes, a debenture can be shared between two lenders through a process known as debenture syndication. In this arrangement, multiple lenders can collectively provide the funds secured by a single debenture, allowing them to share both the risks and returns associated with the loan. The terms of the debenture and the agreement among the lenders will outline how the interest, principal repayment, and rights are divided.
How does share repurchase affects the debt equity ratio of the company?
Stock repurchases increases the debt equity ratio towards higher debt. Share buyback reduces the book value per share and reduces equity hence increasing the debt-to-equity ratio.
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
What is debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
Why preference share is known as Hybrid security?
Pref. Share are combination of equity & debt. They receives interest like bond. And treated as capital stock in b/s. It can be converted into equity or debenture thats why it's called hybrid security
What is the difference between preference share and debentures?
Debenture and Preference shares are often confused with each other,, Basically Preference share is an equity type instrument but debenture is a straight forward loan. Debenture bear fixed interest and its a TAX deductible expense. Company may goes into liquidation if it fails to pay interest on debenture. on the other hand company pay wish to choose not paying any dividend to preference share holder in any given period. debenture holder are lender to company Preference share holder owns the company
How can a company rise capital?
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
Who will paid first debenture holders or preference share holders?
Debenture holders will get preference over preference shareholders
What is equity in share?
what is equty share
Can a debenture be shared between two lenders?
Yes, a debenture can be shared between two lenders through a process known as debenture syndication. In this arrangement, multiple lenders can collectively provide the funds secured by a single debenture, allowing them to share both the risks and returns associated with the loan. The terms of the debenture and the agreement among the lenders will outline how the interest, principal repayment, and rights are divided.
Difference between debenture and equity share?
1)Preference Shares have 2 preferences first payment of dividend in every year in which dividend is proposed & first share capital of preference shares will be payab;e @ winding up or liquidation of the company,where as equity share holders dividend after preference share holders & even share capital capital is also paid after paying to preference share holders. 2)preference share holders are not owners of the company and do not enjoy any voting right. Where as Equity Shares has voting right & they are the real owners of company. 3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to equity shares is payable rest of the dividend payable after preference share holders. Detailed answer here: http://financenmoney.in/types-of-share/
What is an equity share?
Equity share means the single minimum unit of entire share capital of business so if company has total capital of 100 and share price is 10 then total equity shares are also 10 (100/10).
Explain the difference between share of customer and customer equity.?
Explain the difference between share of customer and customer equity
How does share repurchase affects the debt equity ratio of the company?
Stock repurchases increases the debt equity ratio towards higher debt. Share buyback reduces the book value per share and reduces equity hence increasing the debt-to-equity ratio.
