Debt vs Equity

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
Flotation Cost

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

Equity Financing

Equity financing refers to raising capital by giving away some “ownership” of the company. The firms generally raise equity finance by selling the common… Read Article
Pecking order theory

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

Meaning of Equity FinancingEvery organization needs funds to function, and it does so by raising capital. When the capital is raised by the sale… Read Article
American Depository Receipt

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

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 Shares

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