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Security Finance Definition And Meaning

SECURITY FINANCE:

If the finance is mobilized through issue of securities such as shares and debenture, it is called as security finance. It is also called as corporate securities. This type of finance plays a major role in the field of deciding the capital structure of the company.

Security Finance
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Characteristics of Security Finance:

Security finance consists of the following important characters:

1. Long-term sources of finance.

2. It is also called as corporate securities.

3. Security finance includes both shares and debentures.

4. It plays a major role in deciding the capital structure of the company.

5. Repayment of finance is very limited.

6. It is a major part of the company’s total capitalization.

Sourced From: Financial Management By C. Paramasivan And T. Subramanian
Security Finance Definition And Meaning Security Finance Definition And Meaning Reviewed by Ikpokolo Francis on Friday, March 03, 2017 Rating: 5

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