Engineering and fabrication

What are the components of the capital structure? What are the differences of these components?

How do we determine the optimal mix of the components of the capital structure? Explain.

Public Comments

1. The components which form a company's capital :ordinary shares, preference shares, debentures and loan stock.

   Stock is ownership

   Preferred stock gets dividend before common stock and is preferred in the event of a liquidation

   Debentures are unsecured debt

   Loan stock pledges shares to secure loan