Introduction to Venture Capital Financing Venture Capital (VC) financing is a new type of financial intermediary that emerged in India during the 1980s. It involves providing long-term financial assistance to projects established to introduce new products, inventions, ideas, and technology. Venture Capital finance is particularly suitable for risk-oriented businesses that Read more
Introduction to Financial Institutions In today’s financial services marketplace, a financial institution exists primarily to provide a wide variety of deposit, lending, and investment products to individuals, businesses, or both. They are defined as intermediaries that mobilize savings and facilitate the allocation of funds in an efficient manner. Financial institutions Read more
Book building is presented as an important price discovery mechanism used by corporates issuing securities. Its fundamental purpose is to discover the price of the issuer’s securities. It is described as one of the ways of raising finance by a company. Core Concept and Definition At its heart, book building Read more
Loan financing is presented as an important mode of finance raised by a company. Among the various types of loan financing, a significant source of debt financing for corporates is the syndicated loan. Core Concept and Definition A syndicated loan is essentially a loan that is availed from a group Read more
Bridge financing is described as a form of temporary financing. Its primary purpose is to cover a company’s short-term costs until regular long-term financing is secured. The term “bridge financing” is used because it acts like a bridge that connects a company to debt capital through short-term borrowings. Core Concept Read more
Loan financing is a fundamental mode by which companies raise funds. It is considered a part of Creditorship Securities, which refers to finance mobilized from creditors. Unlike equity financing where funds come from owners, loan financing involves borrowing money from external parties who become creditors of the company. Debentures and Read more
A debenture is fundamentally a document issued by a company acknowledging a debt. It is a certificate issued under the company’s seal that serves as evidence of this debt. Debentures are considered a part of Creditorship Securities, also known as debt finance, which refers to finance mobilized from creditors. The Read more
Security financing is a fundamental aspect of financial management, particularly relevant to a company’s financing decisions and capital structure. It involves the mobilization of finance through the issuance of securities, such as shares and debentures. These are also referred to as corporate securities. Core Concept and Role At its core, Read more
A financial market is essentially a market where financial instruments are exchanged or traded. Unlike markets dealing with physical goods or services, a financial market involves the creation or transfer of financial assets. Financial assets or instruments represent a claim to the payment of a sum of money at a Read more
Capital structure is a core area within financial management. It refers to the composition or make-up of a company’s capitalization. Essentially, it represents the specific mixture or mix of long-term debt and equity that a firm uses to finance its assets and meet its long-term investment requirements. The term “capital Read more