Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:
Which of the following is a NOT a method to raise capital in the primary market?
Options:
Purchase and sale of shares from open market
Public Offer
Private placement
None of the above
Correct Answer:
Purchase and sale of shares from open market
Explanation:
SECONDARY MARKET: The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. Thus Option1 is incorrect.