Debt vs Equity
When a business seeks funds through investors, it considers two options: debt vs equity. Debt financing involves borrowing funds from investors by issuing corporate… Read Article
Equity Financing
Vendor Financing – Meaning, Importance And Types
As the name suggests, vendor financing means financing the customer or lending money to a customer. Under this vendor lends money to a customer… Read Article
Flotation Cost
What is Flotation Cost in Finance?Flotation cost is the fee charged by an investment banker for its assistance in raising new capital. This cost… Read Article
Depository Receipts
What are Depository Receipts?Depository receipt is a source of raising foreign capital. It enables an already listed company (in most cases) to raise further… Read Article
Equity Financing – When to Use it?
What is Equity Financing?Equity financing refers to raising capital by giving away some “ownership” of the company. The companies raise equity finance by selling… Read Article
Pecking Order Theory
Pecking order theory is a theory related to capital structure. Donaldson initially suggested it. In 1984, Myers and Majluf modified the theory and made… Read Article
Sources of Equity Financing
Every organization needs funds to function, and it does so by raising capital. When the capital is raised by the sale of shares of… Read Article
American Depository Receipt
American Depository Receipt is a depository receipt that represents the shares of a foreign company issued by a U.S bank that can be traded… Read Article
Global Depository Receipt
Definition of Global Depository ReceiptGlobal Depository Receipt (GDR) is an instrument in which a company located in a domestic country issues one or more… Read Article
Bonus Share
Bonus shares are the additional shares given to the company’s current shareholders free of cost in proportion to their existing shareholding. Such an event… Read Article
Sweat Equity Share
Sweat Equity: MeaningSweat equity is the value-added to an entity as a result of one’s work. No financial capital is paid in to add… Read Article