This relates to composition of various securities in the capital structure of the company. Mainly sources of finance can be divided into two categories meaning in hindi
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Components of Capital Structure: The components of Capital Structure are as follows: Equity Share Capital,Preference Share Capital, Retained Earning , Borrowed Capital
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The term ‘structure’ means the arrangement of the various parts. So capital structure means the arrangement of capital from different sources so that the long-term funds needed for the business are raised.
Thus, capital structure refers to the proportions or combinations of equity share capital, preference share capital, debentures, long-term loans, retained earnings and other long-term sources of funds in the total amount of capital which a firm should raise to run its business.
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