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DEFINITION OF 'CAPITAL STRUCTURE'

A mix of a company's long-term debt, specific short-term debt, common equity
and preferred equity. The capital structure is how a firm finances its overall
operations and growth by using different sources of funds.
Debt comes in the form of bond issues or long-term notes payable, while equity
is classified as common stock, preferred stock or retained earnings. Short-term
debt such as working capital requirements is also considered to be part of the
capital structure.

INVESTOPEDIA EXPLAINS 'CAPITAL STRUCTURE'

A company's proportion of short and long-term debt is considered when
analyzing capital structure. When people refer to capital structure they are most
likely referring to a firm's debt-to-equity ratio, which provides insight into how
risky a company is. Usually a company more heavily financed by debt poses
greater risk, as this firm is relatively highly levered.

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A: Share capital refers to the funds a company receives from selling ownership shares to
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A: Fixed-income securities attract investors because they provide guaranteed returns in the
form of fixed, regular cash payments. ... Read Full Answer >>

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Q: What are the different equity financing options available to companies in the
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A: Preference shares carry a number of benefits for both companies and investors. The
chief benefit for shareholders is that ... Read Full Answer >>

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A: Closed-end funds, or CEFs, are actively managed. A CEF issues a predetermined number
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