Dividends are not mandated to be paid to ordinary shareholders; instead, dividends are paid at the

discretion of the board of directors. Ordinary shares do not have a maturity date, thus the issuing firm is
under no obligation to redeem them. The greater the share of equity in a company's capital structure,
the less likely creditors may experience losses as a result of the borrower failing to meet financial
obligations. Equity — the financial resources provided by the business's owners, including the initial
investment, additional investments, and earnings kept in the business. The difference between total
assets and total liabilities is represented by this figure. Borrowed capital refers to loans made by
financial intermediaries or investors in connection with the issuance of credit instruments.