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    Question

    Match the capital market instruments with their

    respective features:  
    A A-3, B-4, C-1, D-2 Correct Answer Incorrect Answer
    B A-2, B-3, C-4, D-1 Correct Answer Incorrect Answer
    C A-4, B-1, C-3, D-2 Correct Answer Incorrect Answer
    D A-1, B-3, C-2, D-4 Correct Answer Incorrect Answer
    E A-3, B-1, C-2, D-4 Correct Answer Incorrect Answer

    Solution

    Explanation:  

    • Debentures (3) : These are fixed-income instruments where companies borrow funds and pay interest to investors.  
    • Preference Shares (4) : These provide a fixed dividend and have priority over equity shareholders in dividend payouts.  
    • Equity Shares (1) : Represent ownership in a company but have no fixed returns.  
    • Convertible Bonds (2) : These can be converted into equity shares, making them a hybrid security.  

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