Professional Documents
Culture Documents
Borrowed capital[edit]
This is capital which the business borrows from institutions or people, and includes
debentures:
Redeemable debentures
Irredeemable debentures
Debentures to bearer
Ordinary debentures
bonds
deposits
loans
Own capital[edit]
This is capital that owners of a business (shareholders and partners, for example)
provide:
Preference shares/hybrid source of finance
Ordinary preference shares
Cumulative preference shares
Participating preference shares
Ordinary shares
Bonus shares
Founders' shares
These have preference over the equity shares. This means the payments made to
the shareholders are first paid to the preference shareholder(s) and then to the
equity shareholders