BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debentures
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Bonds
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Equity shares
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None of the above
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Detailed explanation-1: -New equity shares are often issued via an initial public offering (IPO), allowing investors to buy the stock of a previously private company for the first time. Was this answer helpful?
Detailed explanation-2: -In a bearish stock market, an organization can depend upon debentures in order to raise the required funds.
Detailed explanation-3: -The rise and fall of share price values affects a company’s market capitalization and therefore its market value. The higher shares are priced, the more a company is worth in market value and vice versa.
Detailed explanation-4: -Money you receive from issuing stock increases the equity of the company’s stockholders. You must make entries similar to the cash account entries to the Stockholder’s Equity account on your balance sheet.
Detailed explanation-5: -The money raised by issue of equity shares is called equity share capital. Equity share represent the ownership of a company and thus thus the capital raised by equity shares are also known as ownership capital or ownership funds.