What are the sources of raising capital?

What are the sources of raising capital?
Funds are raised from international financial market through sale of securities such as long term, medium term and short term funds.
LONG TERM INSTRUMENTS
1.INTERNATIONAL EQUITIES
International equities are a new instrument representing foreign portfolio equity investment. They are ordinary shares sold to international investors in the form of American or Global depository receipts. The investor gets dividend and not interest . They do not have the same voting rights as in the case of foreign direct investment.
The benefit are:
a) The company issues international equities when the domestic capital market s already flooded with its shares.
b) The presence of restrictions on issue of shares in the domestic market facilitates issue of international equities.
c) Company issues international equity for gaining international recognition among the public.
d) International equity bring in foreign exchange which is vital for a firm in a developing country.
e) International capital is available at lower cost through international equities.
f) Funds raised through such an instrument do not add to the foreign exchange exposure.
g) It brings in diversification benefits and raise return with a given risk or lower risk with a given return.

2. INTERNATIONAL BONDS
They are debt instruments that are issued by international agencies, government and companies for borrowing foreign currency for a specified period of time. The issuer pays interest to the creditor and makes repayment of capital. The different types of bonds are:
-Foreign bond
-Euro bond
-Global bond
-Straight bonds
-Floating rate notes
-Convertible bonds
-Cocktail bonds

MEDIUM TERM INSTRUMENTS
MEDIUM TERM EURO NOTES
It is an extension of short term euro notes, which is issued to get medium term funds in foreign currency. They are not underwritten, but there is a provision for underwriting. They carry fixed rate of interest.

SHORT TERM INSTRUMENTS
1. EURO NOTES
Euro notes are like promissory notes issued by companies for obtaining short term funds. They are denominated in any currency other than the currency of the country where they are issued. It is a low cost funding route. The documentation facilities are minimum. Investors prefer them due to short maturity. When issuer issues euro notes, it hires the service o agent who issues the notes, gets them underwritten and sells them through placement agents. After selling period is over, the underwriter buys the unsold issues.

2. EURO COMMERCIAL PAPERS
They are short term fund instruments issued only by highly rated companies. They are not underwritten. It faces minimal documentation. ECPs have longer maturity going u to one year. The ECP route for raising funds is investor driven.