Category: Capital Market

The capital structure of a company is the composition of its long-term financing. It is typically composed of debt (including bonds and loans), preferred equity, and common equity. The debt portion includes all interest-bearing obligations, while the equity portion consists of all ownership interests. A company’s capital structure is important because it can affect the… Continue reading Capital Structures | How to Benefit?

An asset-backed security is a type of debt instrument that is secured by a pool of assets. The asset pool can be composed of a variety of assets, such as loans, leases, credit card receivables, or other types of financial instruments. Asset-backed securities are created through the process of securitization, which involves the creation of… Continue reading Asset-Backed Securities | All you must know

The difference between a stock exchange and commodity exchange is the type of security that is traded. A stock exchange trades stocks, which are shares of ownership in a company. A commodity exchange trades commodities, which are natural resources like gold, oil, or wheat. Both exchanges allow trading between buyers and sellers, but the type… Continue reading Stock Exchange Vs Commodity Exchange

A commodity exchange is an organized marketplace where commodities are traded. Commodities exchanges usually deal in standardized contracts that have been assigned a particular grade by an official grading system. These exchange-traded contracts can be bought and sold on the exchange floor or electronically. In basic terms, a commodity exchange is a marketplace where buyers… Continue reading What is a Commodity Exchange?