Download to read offline
More Related Content
Similar to Sources of Long term finance
Sources of Long term finance
- 1. Long-term Finance- “Shares” Management ofFinancial Resource
- 2. Long-term Finance • BorrowedCapital that will be repaid over a specific time period longer than five years.
- 4. Sources Of Long-termFinance • Shares • Public Deposits • Debentures • Various Financial Institutions
- 5. “Shares” • Shares arethe most common form of raising long term finance from market (share market).
- 7. Preference Shares • Theseshares are those which are given preference as regards to payment of dividend and repayment of capital.
- 9. Cumulative Preference Shares •Unpaid Dividends which are carried forward for subsequent years and then paid off in full are called as Cumulative Preference shares.
- 10. Non – CumulativePreference shares • Those Shares which have right to get fixed rate of dividend out of the profits of the current year only.
- 11. Redeemable Preference Shares •Those preference shares, which can be repaid after the expiry of a fixed period.
- 12. Non – RedeemablePreference Shares • Those shares which cannot be redeemed or repaid during the life time of the company.
- 13. Participative Preference Shares •Those Preference share, which have right to participate in any surplus profit of the company after paying the equity shareholders.
- 14. Non – ParticipativePreference Shares • Preference shares, which have no right to participate on the surplus profit of the company.
- 15. Convertible Preference Shares •Those Preference shares which can be converted into Equity Shares are called Convertible Preference shares.
- 16. Non – ConvertiblePreference Shares • Preference shares, which are not convertible into Equity shares are called Non – Convertible Preference Share.
- 17. Equity Shares • Theseare the shares which do not enjoy any preference regarding payment of dividend and repayment of their capital.
- 20. Types of EquityShares issued by companies • Blue Chip Shares • Income Shares • Growth Shares • Cyclic Shares • Defensive Shares • Speculative Shares.
- 21. Blue Chip Shares •These are the shares of some of the companies which have been doing extremely well in the past few years. These are usually well established Companies.
- 22. Income Shares • Theseare the shares of the companies which have stable operations. The companies have a high dividend payout ratio.
- 23. Growth shares • Theseare the shares of companies which have secured their positions in a particular Industry. These shares have less dividend payout ratio and hence high growth potential.
- 24. Cyclical shares • Theseare the shares of company whose performance varies with the stages of the cycle.
- 25. Defensive Shares • Theseare the shares of the company whose performance does change with the changes in the economy.
- 26. Speculative shares • Theseshares are the shares which are traded in the company which have a lot of speculations.
- 29.