Security finance Finance is mobilized through issue of securities such as shares and debenture. also called as corporate securities. Helps in deciding the capital structure of the company.
Finance is mobilized through issue of securities such as shares
and debenture.also called as corporate securities.Helps in deciding
the capital structure of the company.
Characteristics of security finance
Long-term sources of finance. It is also called as corporate
securities. Security finance includes both shares and debentures.
It plays a major role in deciding the capital structure of the
company. Repayment of finance is very limited. It is a major part
of the companys total capitalization.
Types of Security Finance
Security finance may be divided into two major types1. Ownership
securities or capital stock.2. Creditor ship securities or debt
capitalOwnership Securities
also called as capital stock, is commonly called as sharesShares
are the most Universal method of raising finance for the business
concern.Ownership capital consists of the following types of
securities.Equity SharesPreference SharesNo par stockDeferred
Shares
