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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

Finance

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

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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.