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 source of new capital
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Answer
A public company raises new capital primarily through the primary market, where new securities are issued. Therefore, the correct answer is (A) Primary market of the Australian Securities Exchange.
