discuss the source of raising finances through the equity shares and debentures? Compare their relative merits and demerits?
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Answer (1)
22nd Feb, 2021
Hello candidate,
Source of raising finance through equity shares and debentures are from various fields such as sources loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.
The main advantage of of such finance raising is that it helps us to choose our own investors, and despite being a private company it helps a company get financed through public funding.
The Main disadvantage is that the need to place the bonds or shares at a substantial discounted rate.
Hope it helps!!
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