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Question
Study the following case/situation and express your opinion.
| Jack & Jones, a newly incorporated organization wants to raise capital for the first time by issuing equity shares. |
- Should it go for Primary Market or the Secondary Market?
- What will be the issue of equity shares by Jack & Jones called?
Solution
- As a newly incorporated organization, Jack and Jones should target the primary market, where the company organizes the sources of finance for capital appreciation.
- The shares of Jack & Jones will be issued in the stock market for the first time as an Initial Public Offering.
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