chose the correct answer Which of the following indicates th

chose the correct answer

Which of the following indicates the two basic sources of equity capital?

1-Ordinary shares and preference shares

2-Ordinary shares and convertible securities

3-Convertible securities and notes receivable

4-Convertible securities and preference shares

Solution

Equity Capital:
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,

Answer:

Two basic sources of equity capital are,
1.Ordinary shares and preference shares

(Option 2,3,4  convertible securities also include bonds which are part of debt capital.)