Question

A company can raise funds througtissue of securities which bear a fixed rate
of interest. Public issue of such curities requires that the issue be rated by
credit rating agency
a) Identify the securities discussed above
b) How such securities are better than owned sources of finance. State any
four reasons
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Answer 1

Answer:

Debentures can be issued by the company to raise funds as long debt capital which the company promise to company back on fixed rate of interest.

Answer 2

$\mathbb{ \ \ A\ N\ S\ W\ E\ R\: \: }$

Public Limited Companies are owned by their shareholders. Because only public limited companies are listed on stock markets, all of whom are by definition, virtually anyone with enough money to buy shares on the Stock Market could be a potential co-owner of a public company.