{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

week 5 - ,Derivatives& &fixedassets.(IPO& funds.

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The sources of long term financing are - Debt , Derivatives & Equity financing by long-term interest loans to finance long- term investment projects & fixed assets.  Equity - By going for intial public offer ( IPO ) & diluting the stake of company to raise  funds. Derivatives is another method of financing long-term investments using future derivatives like swaptions, forward  contracts, future contracts & options. Short term financing is a type of finance which is required for a period of less than an  year. the short-term finance is used for working capital requirements of the company. four sources of short-term financing are -  TRADE  CREDITS, ADVANCES FROM THE CUSTOMERS, COMMERCIAL  BANKS &  FINANCIAL INSTITUTIONS   trade credits  - these are credits in the form of the goods given by one firm to another to buy goods. the range of credit 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online