ACCTG 1 Lecture Notes - Lecture 20: Leaseback, Irredeemable, Initial Public Offering
Document Summary
Sources of finance: external funds gained from outside the organisation. Typical sources of funding: mid long term, equity shares (long term, debt loans, leasing, short term bank overdraft, debt factoring, invoice discounting. Ordinary shares most common type of company share, shows ownership of the business, normally entitled to receive a dividend, normally has voting rights. Initial public offer when a company puts shares up onto the market for investors to buy. Rights issue when existing shareholders are given the opportunity to subscribe for more shares in proportion of their existing holdings. Bonus (script) issue when shareholders are given further shares perhaps in addition to a dividend. Placing when shares are privately placed" sold to selected individuals or institutions without being publicly offered. Offers for sale a company sells new shares to a financial institution (an issuing house) who then sells them on to the public. Leasing a form of loan but is easiest described as being like a rental agreement.
