Tag Archives | Finance Sources

Preference Shares: Types, Features and Advantages

After reading this article you will learn about Preference Shares:- 1. Types of Preference Shares 2. Features of Preference Shares 3. Advantages 4. Disadvantages. Types of Preference Shares: Preference shares are of the following types: (a) Cumulative Preference Shares: These shares have a right to claim dividend for those years also for which there are […]

Top 5 Forms of Financial Lease| Finance Sources

This article throws light upon the top five forms of financial lease. The forms are: 1. Sale and Leaseback 2. Direct Leasing 3. Leveraged Lease 4. Straight Lease and Modified Lease 5. Primary and Secondary Lease. Financial Lease: Form # 1. Sale and Leaseback: A sale and leaseback arrangement involves the sale of an asset […]

Top 6 Characteristics of Equity Shares | Finance Sources

This article throws light upon the top six characteristics of equity shares. The characteristics are: 1. Maturity 2. Right to Income 3. Claim on Assets 4. Voting Rights 5. Pre-emptive Right 6. Limited Liability. Equity Shares: Characteristic # 1. Maturity: Equity shares provide permanent capital to the company and cannot be redeemed during the life […]

Difference between Shares and Debentures | Finance Sources

This article will help you to differentiate between Shares and Debentures. Difference # Shares: 1. A share is a part of owned capital. 2. Shareholders are paid dividend on the shares held by them. 3. The rate of dividend depends upon the amount of divisible profits and policy of the Board of Directors. 4. Dividend […]

Categories for Classification of Corporate Securities (With Diagram)

This article throws light upon the top two categories for classification of corporate securities. The categories are: 1. Ownership Securities 2. Creditor-ship Securities. Category # 1. Ownership Securities: The term ‘ownership securities,’ also known as ‘capital stock’ represents shares. Shares are the most universal form of raising long-term funds from the market. Every company, except […]

Debenture Types: Top 13 Types of Debenture

This article throws light upon the top thirteen types of debenture. The types are:  1. Simple, Naked or Unsecured Debentures 2. Secured or Mortgaged Debentures 3. Bearer Debentures 4. Registered Debentures 5. Redeemable Debentures 6. Irredeemable Debentures 7. Convertible Debentures 8. Zero Interest Bonds / Debentures 9. Zero Coupon Bonds 10. First Debentures and Second […]

Equity Share: Advantages and Disadvantages | Finance Sources

After reading this article you will learn about the Advantages and Disadvantages of Equity Share. Advantages of Equity Shares: 1. Equity shares do not create any obligation to pay a fixed rate of dividend. 2. Equity shares can be issued without creating any charge over the assets of the company. 3. It is a permanent […]

Sources of Internal Financing for Existing Concerns

This article throws light upon the top two sources of internal financing for existing concerns. The sources are: 1. Ploughing Back of Profits 2. Depreciation as a Source of Funds. Internal Financing for Existing Concerns: Source # 1. Ploughing Back of Profits: The ‘Ploughing Back of Profits’ is a technique of financial management under which […]

Top 2 Categories for Evaluation of Public Deposits

This article throws light upon the top two categories for evaluation of public deposits. The categories are: 1. As a Source of Corporate Finance 2. Investor’s Point of View. Category # 1. As a Source of Corporate Finance: Many companies have accepted unsecured deposits from the public in the recent past, in India, mainly to […]

Top 2 Sources of Term Loan

This article throws light upon the top two sources of term loan. The sources are: 1. Specialised Financial Institutions 2. Commercial Banks. Term Loans: Source # 1. Specialised Financial Institutions: The need for establishing financial institutions was felt in many countries immediately after the Second World War in order to re-establish their war shattered economies. […]

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