corporate finance capital can be raised by By

-Private Placement of shares offers for Sale.

-By allotting entire shares to an ‘issue house’ which in turn offers the shares for sale to the public 

-Public issue of shares-By inviting the public to subscribe for shares in the company through a prospectus. 

-Right’s issue-Issue of shares to existing shareholders.

- A public Co can also raise its capital by placing the shares privately & without inviting the public for the subscription of shares or debentures. 

-In this, an underwriter or a broker finds persons, normally his clients who wish to buy the shares. He acts as an agent & his function is to procure a buyer for shares.

-Since no public offer is made for shares there is no need to issue any prospectus.

corporate finance departments are charged with governing and overseeing their firms' financial activities and capital investment decisions. Such decisions include whether to pursue a proposed investment and whether to pay for the investment with equity, debt, or both.

 

The basis of corporate finance is the separation of ownership and management. Now, the firm is not restricted by capital which needs to be provided by an individual owner only. The general public needs avenues for investing their excess savings. They are not content with putting all their money in risk-free bank accounts. They wish to take a risk with some of their money. It is because of this reason that capital markets have emerged. They serve the dual need of providing corporations with access to a source of financing while at the same time they provide the general public with a plethora of choices for investment.

If the objective function in corporate finance is to maximize firm value, it follows that firm value must be linked to the three corporate finance decisions outlined investment, financing, and dividend decisions. If the objective function in corporate finance is to maximize firm value, it follows that firm value must be linked to the three corporate finance decisions outlined—investment, financing, and dividend decisions. 

The financing decisions affect the value of a firm through both the discount rate and potentially through the expected cash flows.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.