Equity investment, usually through the sale of common stock, is a ____________ part of a firm's capital structure.

Question

Quizplus · Accepted Answer

Equity investment, particularly common stock, represents a permanent part of a firm's capital structure because there is no maturity date for common stock and shareholders have a perpetual interest in the company. Additionally, common stock does not require periodic payments to investors, unlike debt instruments such as bonds.

Equity Investment, Usually Through the Sale of Common Stock, Is