Generally,financial instruments are divided into three broad categories of equity,debt and derivatives.Which of the following are usually issued by a company to raise new funds?
i.Unsecured notes
ii.Ordinary shares
iii.Debentures
iv.Bills of exchange
v.Futures contracts
vi.Preference shares
A) ii, iii, iv, v
B) ii, iv, v, vi
C) i, ii, iii, iv
D) i, ii, iv, v

Question

Quizplus · Accepted Answer

i. Unsecured notes, ii. Ordinary shares, iii. Debentures, and iv. Bills of exchange are financial instruments typically issued by companies to raise new funds. Unsecured notes and debentures are forms of debt financing, while ordinary shares and preference shares represent equity financing. Bills of exchange are used in trade financing but can also be a method for a company to raise funds. Futures contracts (v), however, are derivative instruments and not typically issued by companies to raise funds.

Generally,financial Instruments Are Divided into Three Broad Categories of Equity,debt