[amp_mcq option1=”Public issue” option2=”Rights issue” option3=”Bought out deals” option4=”All of the above” correct=”option4″]<\/p>\n
The correct answer is: D. All of the above<\/strong><\/p>\n A company may raise capital from the primary market through a public issue, a rights issue, or a bought out deal.<\/p>\n A public issue is when a company offers its shares to the public for the first time. This is done through an initial public offering (IPO). In an IPO, the company sells its shares to investors through an investment bank. The investment bank will then sell the shares to the public on a stock exchange.<\/p>\n A rights issue is when a company offers existing shareholders the opportunity to buy new shares in the company. This is done at a discount to the market price of the shares. Rights issues are often used by companies to raise capital to fund expansion or to repay debt.<\/p>\n A bought out deal is when a company is acquired by another company. In a bought out deal, the acquiring company will typically offer to buy all of the shares in the target company at a premium to the market price. Bought out deals are often used by companies to expand their business or to enter new markets.<\/p>\n Here is a table that summarizes the key features of each type of capital raising:<\/p>\n | Type of capital raising | Key features | I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Public issue” option2=”Rights issue” option3=”Bought out deals” option4=”All of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-46448","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n
\n| — | — |
\n| Public issue | Shares are offered to the public for the first time. |
\n| Rights issue | Existing shareholders are offered the opportunity to buy new shares in the company. |
\n| Bought out deal | One company acquires another company. |<\/p>\n