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What is capital stricture

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What is capital stricture

Posted by Akshansh Sharma 7 years, 10 months ago

CBSE > Class 12 > Business Studies

3 answers

Ankur V 7 years, 10 months ago

I will Tell you with the help of an example Suppose you want to open a company then what will you look for first thing? if you dont have enough money?? surely ( Money) capital. Now you have two options to raise the money 1) Loan from bank( Debt) 2) Or you can opt for capital market (Equity) It means you can deal in securities such like debentures , shares etc Now Lets assume you have raise 50% funds from loan and 50% funds from the issuing share . After this your formed a company and invested this money as a capital ( so we can say your company capital structure is the ratio of debt and equity) isn't it? Remember ( the better capital structure you form the better money you earn from your company)

Isha Vig 7 years, 10 months ago

It is the proportion of debt and equity .

Lalita Gariya 7 years, 10 months ago

It is a combination of different securities.i.e ,debt and equity

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