Question

What is difference between capitalisation and capital structure?​

Answer 1

Answer:

While capitalisation is a quantitative aspect of the financial planning of an enterprise, capital structure is concerned with the qualitative aspect. Capitalisation refers to the total amount of securities issued by a company while capital structure refers to the kinds of securities and the proportionate amounts that make up capitalisation.

For raising long-term finances, a company can issue three types of securities viz. Equity shares, Preference Shares and Debentures. A decision about the proportion among these type of securities refers to the capital structure of an enterprise.

hope it helps..