Ch 2Sources of Corporate Finance — Class 12 Secretarial Practice, concept-first.

A joint stock company is, by its very nature, a large-scale form of business organisation, and running one — buying land and machinery, employing people, holding stock, extending credit to buyers — ne…

The most familiar way a joint stock company raises owned capital is by issuing shares. Section 2(84) of the Companies Act, 2013 defines a share to mean a share in the share capital of a company, and i…

Equity shares, also called ordinary shares, are the fundamental source of financing a company's business activities, and the Companies Act, 2013 defines them somewhat indirectly, as "those shares whic…

Preference shares are, as their name signals, shares that carry certain preferential rights that ordinary equity shares do not — specifically, a preferential right to receive dividend, at a fixed rate…

Not every source of owned capital comes from outside the company. Retained earnings — also called ploughing back of profit, or self-financing — is the process by which a company keeps back a part of i…

Owned capital by itself is rarely enough to run a large joint stock company, so a company also borrows — and one of the principal instruments through which it borrows to meet its long- and medium-term…

Beyond debentures, a company can raise short- and medium-term borrowed capital directly from the investing public by accepting public deposits.

An Indian company's shares are ordinarily listed and traded on Indian stock exchanges such as the Bombay Stock Exchange and the National Stock Exchange.

Bringing the chapter's main classifications together in one place makes it much easier to answer a distinguish-type question accurately, since these three comparisons are among the most frequently tes…

Sample papers and previous-year board questions for this subject.