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Which among the following is NOT a method of raising the required capital in the primary market? - Entrepreneurship

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Question

Which among the following is NOT a method of raising the required capital in the primary market?

Options

  • Xma Ltd. raised additional finance from existing shareholders by offering securities to them in proportion to the shares they are holding.

  • Prabhat Luminous Ltd. raised funds by selling its shares mainly to the General Insurance Corporation of India and Army Group Insurance.

  • To increase the efficiency of the employees and reduce labour turnover, the management of CVK Ltd. made employees the shareholders and enabled them to share the profits of the company.

  • Sujata AI Ltd. raised funds from Mr. Bansal, an affluent individual in exchange for ownership equity.

MCQ

Solution

Sujata AI Ltd. raised funds from Mr. Bansal, an affluent individual in exchange for ownership equity.

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Types of Financial Market - Capital Market
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2023-2024 (March) Board Sample Paper

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