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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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