Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:
When the stock market index is rising, a company may issue which of the following securities in order to meet its financial requirements?
Options:
Equity Shares
Debentures
Bonds
Any of the above
Correct Answer:
Equity Shares
Explanation:
Health of the capital market may also affect the choice of source of fund. During the period when stock market is rising, more people invest in equity. However, depressed capital market may make issue of equity shares difficult for any company.