Public Securities – Types and Accounting Treatment
Public Securities are the financial instruments that one can trade in the market. Also known as marketable securities, these instruments can either be Equity… Read Article
Preference Share
Conversion Price
What is the Conversion Price?The conversion price informs the bondholders of the number of shares that would be issued in case they opt for… Read Article
Long Term Finance
What is Long-Term Finance?The funds that are not paid back within less than a year are referred to as long-term finance. Certain long-term finance… 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
Capital Stock
Meaning of Capital StockThe capital stock is a component of a balance sheet that represents the sum of common and preferred stock that a… Read Article
Cumulative Preferred Stock
A cumulative preferred stock is a type of preferred stock wherein the stockholders are entitled to receive cumulative dividends if any dividend payment has… 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
Cost of Preference Share Capital
The cost of preference share capital is the dividend committed and paid by the company. This cost is not relevant for project evaluation because… Read Article
Advantages and Disadvantages of Preference Shares
Preference shares are hybrid financing instruments having several benefits and disadvantages of using them as a source of capital. Benefits are – an absence… Read Article
Types of Preference Shares
There are various types of Preferences Shares with differences in their structure. These are cumulative, non-cumulative, participating, non-participating, redeemable, irredeemable, convertible, non-convertible, callable, and… Read Article
Preference Shares and its Features
Preference shares are one of the special types of share capital having a fixed dividend rate. They carry preferential rights over ordinary equity shares… Read Article