Nội dung text Share Ch_20_Long Term Finance.ppt
LONG TERM FINANCE: SHARES, DEBENTURES AND TERM LOANS CHAPTE R 20
LEARNING OBJECTIVES Explain the features of ordinary shares Focus on the benefits and valuation of rights shares Discuss the pros and cons of debentures and preference shares Highlight the features of term loans #
INTRODUCTION Ordinary shares provide ownership rights to investors. Debentures or bonds provide loan capital to the company, and investors get the status of lenders. Loan capital is also directly available from the financial institutions to the companies. #
Ordinary Shares–Features Claim on Income Claim on Assets Right to Control Voting Rights Pre-Emptive Rights Limited Liability #