+1 862 207 3288 Generally, companies often follow a target capital structure making market conditions irrelevant in deciding on their capital structure. The most resources for capital structure is Debt and Equity.
Debt is a form of financing in which the borrower pays a fixed rate of interest to the investor. Here, the investor who invest seeks and enquires about the credit rating of the company. Many a times, they often seek collateral as a security for their financing.
Equity on the other hand is issuing shares to the public at large in order to raise necessary capital for the company. Here, the people who invest in the shares of the firm are entirely responsible even in case of losing out the entire money. It is not necessary for the company to pay dividends to these investors.”
