Fundamentals of Corporate Securities and Finance

📋 Course Outline

1. Trade Credit & Function
2. Equity & Share Types
3. Debenture & Debt Instruments
4. Euro Issue & International Finance
5. Preference Share & Rights
6. NSDL & Technology Infrastructure
7. Corporate Finance & Sources
8. Share Issue & Procedures
9. Debenture Issue & Regulations
10. Depository System & Operations

📖 1. Trade Credit & Function

🔑 Key Concepts & Definitions

• Trade Credit: A short-term financing arrangement where suppliers allow buyers to purchase goods or services on credit, deferring payment to a later date.
• Credit Period: The duration allowed by the supplier for the buyer to settle the payment after receiving goods or services.
• Trade Credit Terms: Conditions set by suppliers, including credit period, discounts for early payment, and penalties for late payment.
• Trade Credit as a Source of Finance: An informal, cost-effective method of financing working capital needs without involving external borrowing.
• Function of Trade Credit: Facilitates smooth business operations by providing liquidity, encouraging sales, and strengthening supplier-buyer relationships.

📝 Essential Points