Capital and product market

Capital and product market

What are the main powers of shareholders?

• Elect directors
• Appoint the auditors in an annual meeting of the shareholders
• Entitled to annual report of company’s financial performance

What are 2 ways can Companies be categorized ?

• private
• Public

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What is a private Company? (Characteristics)

• Only a few shareholders shares traded privately

What is a public Company?

• Many share holders shares are traded publicly

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What is capital market?

• The market in which investors buy and sell the shares of companies is associated with the Stock Exchange.

What is Equity?

• funds that Companies obtain from shareholders

What is debt?

• funds that companies raise by borrowings from financiers
• Both of these (equity and debt) constitute the capital employed in the business.


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