They are given some preferences because they are not given the voting rights.

A debenture is a document or certificate, which is issued under the common seal of the company, acknowledging its debt to the holders at given terms and conditions.

Trade credit is the credit extended by one trader to another for the purchase of goods and services.

Its objective was to coordinate the activities of other financial institutions including commercial banks. The bank performs three types of functions namely, assistance to other financial institutions, direct assistance to industrial concerns and promotion and coordination of financial technique service.

It is not suitable for those investors who want to get a fixed return without failure.

The right to use the asset in lieu of specific pre payment for a specific time period.

Debenture holders are creditors of the company.

(a) Discounting of bills and collection of the client's receivables.
(b) Providing information to the client on credit worthiness of prospective client.

Public deposits.

Equity shareholders are called the owners of the company.

Equity shares and retained earnings

(a) They get dividend at a fixed rate and dividend is given on these shares before any dividend on equity shares.
(b) When company winds up, preference shares are paid before equity shares.
(c) Preference shares also have a right to participate in excess profits left after payment being made to equity shares.
(d)They also have a right to participate in the premium at the time of redemption.

Short term sources include trade credit,' factoring, banks and commercial papers. Middle term credit sources include loans from banks, public deposits, loans from financial institutions and lease financing.

Various sources of long term funds include: Equity shares, preference shares, debentures, retained earnings, loans from financial institutions, loans from commercial banks etc.

Global Depository Receipts and American Depository Receipts