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Companies prefer equity capital because it is less expensive.
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Debt capital is always raised for short‐term periods.
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Debt instruments are listed and traded on the secondary markets
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The paid‐up capital of a company can be higher than its issued capital.
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The Authorised capital of the company can be raised if the company wants to increase the capital once it is fixed.
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Debt capital has fixed maturity
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The denomination in which equity capital is issued is called Face or Par Value
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Equity capital gives returns from Dividends and Capital Appreciation for the investor.
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Equity capital is for perpetuity from the point of view of the company.
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The interest that a company will have to pay on the debt raised will depend upon its Default Risk.

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