capital market instruments
TRANSCRIPT
Capital Market Instruments
By Abhijeet Singh
What are Capital Instruments?
Capital InstrumentsAn instrument floated for
Sharing risk.
Preparing a strong capital structure.
Getting public funds and reducing the cost of capital.
Capital Instruments
Found in the Indian Market
● Equity Shares
● Preferential Shares
● Debentures
● Commercial Papers
● Long Term Loans
● Government Bonds
PropertiesThere are three basic characteristics associated with capital market instruments.
1. Risk2. Control3. Return
How does the choice of an capital instrument affects the capital decision?
What to choose?
Risk Control Return
Equity Shares High Low High
Preferential Shares Ok Ok Ok
Debentures Low High Low
A comparison of a few types of financial instruments.
Thank You!Bhiya RAM!!!