Flashcards: Fundamentals of Corporate Securities and Finance — 10 cards

All cards

1Question

Trade Credit — function?

Answer

Provides liquidity and encourages sales.

2Question

Trade Credit — function?

Answer

Provides short-term liquidity, encourages sales.

3Question

Equity Share — rights?

Answer

Ownership, voting, residual profits.

4Question

Equity Share — role?

Answer

Ownership, voting rights, profits claim.

5Question

Debenture — type?

Answer

Long-term debt instrument, fixed interest.

6Question

Preference Share — advantage?

Answer

Pref dividend, assets during liquidation.

7Question

Debenture — what?

Answer

Long-term debt instrument with fixed interest.

8Question

Euro Issue — meaning?

Answer

Shares/securities issued abroad by a company.

9Question

NSDL — purpose?

Answer

Infrastructures for electronic securities depository.

10Question

Corporate Finance — sources?

Answer

Equity, debt, retained earnings, external borrowings.

Test yourself with the quiz

Test your knowledge with 9 questions on Fundamentals of Corporate Securities and Finance.

1. What is trade credit primarily considered as in business operations?

2. What is the typical range of the credit period allowed in trade credit agreements?

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