Fill This Form To Receive Instant Help
Homework answers / question archive / Which of the following indicates the two basic sources of equity capital? Ordinary shares and preference shares Ordinary shares and convertible securities Convertible securities and notes receivable Convertible securities and preference shares
Which of the following indicates the two basic sources of equity capital?
Ordinary shares and preference shares
Ordinary shares and convertible securities
Convertible securities and notes receivable
Convertible securities and preference shares
The correct option is 1st "Ordinary shares and preference shares". The Equity Capital refers to that portion of the organization's capital, which is raised in exchange for the share of ownership in the company. Two basic sources of equity capital are Ordinary shares and preference shares.