Answer to Question #297599 in Finance for moha

Question

Describe any 4capital market financial instruments as used in financial management.  

Answer 1

Securities are the fungible and tradable financial instrument that is normally used in markets both private and public.

Equity shares are considered as one of the long-term financial sources of most companies. They are such that are issued to the general public and cannot be redeemed in nature.

Preference Shares are also called the preferred stock and are the share of the company's stock with the dividends that are paid out to the shareholders before the common stock dividend is issued.

Debentures are the type of investment or the security issued normally by the organization in order to be able to make money for the purposes of the long-term activities and the general growth of the organization.