- 1 Marks
Question
Which of the following is NOT a source of new finance for public limited liability companies?
A. Placing
B. Rights issue
C. Initial public offer
D. Stock exchange introduction
E. Offer for sale by tender
Answer
D. Stock exchange introduction
Explanation: Stock exchange introduction is a method by which companies get listed on the stock exchange without raising new funds. It allows the existing shareholders to trade their shares but does not bring new finance into the company. Other options, like rights issue, initial public offer, and offer for sale by tender, involve raising new capital from investors.
- Tags: Capital Markets, Corporate finance, Public Finance
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: MAR/JULY 2020
- Uploader: Theophilus