Based on the following case study, answer the question.

Big Limited is requiring ₹1000 crores for modernisation of its existing projects. A meeting of its finance department head was called with the board of directors to decide how to manage the required funds. It was decided in the meeting that ₹200 crores will be raised immediately by giving privilege to the existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. ₹300 crores will be raised by allotting securities to institutional investors. Half of the balance required funds will be raised by a direct appeal to investors by means of a advertisement in newspapers and rest to issuing houses and stock brokers at an agreed price.

Select the term used for issuing houses and stock brokers.

Intermediaries

The correct answer is option (2) : Intermediaries

The term used for issuing houses and stock brokers is :

2. Intermediaries

Issuing houses and stock brokers are intermediaries in the financial markets. They play a role in facilitating the issuance and trading of securities but do not own the securities themselves.