Trading on Equity

AFM Capital Structure and Cost of Capital Free JAIIB Capsule 24 views Updated 16 Sep 2026

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AFM · Capital Structure and Cost of Capital

Promoters often prefer to borrow money rather than issue more shares. What is the financial principle of 'Trading on Equity' designed to achieve for the owners?

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Promoters often prefer to borrow money rather than issue more shares. What is the financial principle of 'Trading on Equity' designed to achieve for the owners?

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This capsule covers Accounting & Financial Management for Bankers, Capital Structure and Cost of Capital. Members get the complete explanation plus every other premium capsule, mock test and PDF.

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