The document discusses various types of long-term finance sources and shares. It describes that long-term finance includes borrowed capital repaid over 5+ years. Common long-term finance sources are shares, public deposits, debentures, and financial institutions. Shares are a common way to raise long-term finance from markets. There are different types of preference shares including cumulative, non-cumulative, redeemable, non-redeemable, participative, non-participative, convertible, and non-convertible shares. Equity shares do not have repayment or dividend preferences. Companies issue various types of equity shares like blue chip, income, growth, cyclic, defensive, and speculative shares.

1. Long-term Finance-
“Shares”
Management of Financial Resource

2. Long-term Finance
• Borrowed Capital that will be
repaid over a specific time period
longer than five years.

4. Sources Of Long-term Finance
• Shares
• Public Deposits
• Debentures
• Various Financial Institutions

5. “Shares”
• Shares are the most common
form of raising long term finance
from market (share market).

7. Preference Shares
• These shares are those which are given
preference as regards to payment of
dividend and repayment of capital.

9. Cumulative Preference Shares
• Unpaid Dividends which are carried
forward for subsequent years and
then paid off in full are called as
Cumulative Preference shares.

10. Non – Cumulative Preference
shares
• Those Shares which have right to
get fixed rate of dividend out of
the profits of the current year
only.

11. Redeemable Preference Shares
• Those preference shares,
which can be repaid after the
expiry of a fixed period.

12. Non – Redeemable Preference
Shares
• Those shares which cannot be
redeemed or repaid during the
life time of the company.

13. Participative Preference Shares
• Those Preference share, which
have right to participate in any
surplus profit of the company
after paying the equity
shareholders.

14. Non – Participative Preference
Shares
• Preference shares, which have
no right to participate on the
surplus profit of the company.

15. Convertible Preference Shares
• Those Preference shares which
can be converted into Equity
Shares are called Convertible
Preference shares.

16. Non – Convertible Preference
Shares
• Preference shares, which are not
convertible into Equity shares are
called Non – Convertible Preference
Share.

17. Equity Shares
• These are the shares which do not enjoy
any preference regarding payment of
dividend and repayment of their capital.

20. Types of Equity Shares issued by
companies
• Blue Chip Shares
• Income Shares
• Growth Shares
• Cyclic Shares
• Defensive Shares
• Speculative Shares.

21. Blue Chip Shares
• These are the shares of some of the
companies which have been doing
extremely well in the past few years.
These are usually well established
Companies.

22. Income Shares
• These are the shares of the
companies which have stable
operations. The companies have
a high dividend payout ratio.

23. Growth shares
• These are the shares of companies which
have secured their positions in a
particular Industry. These shares have
less dividend payout ratio and hence high
growth potential.

24. Cyclical shares
• These are the shares of company
whose performance varies with
the stages of the cycle.

25. Defensive Shares
• These are the shares of the company
whose performance does change with
the changes in the economy.

26. Speculative shares
• These shares are the shares which
are traded in the company which
have a lot of speculations.

29. 
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