AN ANALAYSIS OF INNOVATIVE INSTRUMENTS OF RAISING FINANCE BY LISTED INDIAN COMPANY
Monday, February 20, 2012 5:08AN ANALAYSIS OF INNOVATIVE INSTRUMENTS OF RAISING FINANCE BY LISTED INDIAN Firm
Companies have been using numerous financial instruments to raising needed capital for achievement of their broad corporative objectives. The innovative instruments have the potential to aid Indian firms to overcome the severe financing constraints they have been experiencing over a long period of time. Firms are doing every thing to tap obtainable financial resources by way of the use of old and innovative instruments and the method will continue indefinetly.Organizations in their pursuit of reducing the cost of capital, put a premium on such instrument which will aid in achieving such an objectives.
A financial instrument is a mixture of characteristics such as promised yield liquidity, maturity, security and risk. The process of financial innovation involves creating new instruments and method by unpackaging and rebinding the same characteristics in various fashion to suit the continuously changing the requirements of the problems and the investor’s .These innovative are of two kinds:-