What is a source of new capital for a public company?
(A) Primary market of the Australian Securities Exchange
(B) Secondary market of the Australian Securities Exchange
(C) Primary market of the Australian Securities and Investment Commission
(D) Secondary market of the Australian Securities and Investment Commission - HSC - SSCE Business Studies - Question 6 - 2015 - Paper 1
Question 6
What is a source of new capital for a public company?
(A) Primary market of the Australian Securities Exchange
(B) Secondary market of the Australian Securities Exc... show full transcript
Worked Solution & Example Answer:What is a source of new capital for a public company?
(A) Primary market of the Australian Securities Exchange
(B) Secondary market of the Australian Securities Exchange
(C) Primary market of the Australian Securities and Investment Commission
(D) Secondary market of the Australian Securities and Investment Commission - HSC - SSCE Business Studies - Question 6 - 2015 - Paper 1
Step 1
Identify the correct source of new capital
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Answer
The primary market of the Australian Securities Exchange is a source of new capital for a public company. In the primary market, new securities are created and sold to investors, thus providing fresh capital to the company.
