During a bearish phase of stock market, a company may find raising of equity capital more _____.

Difficult

The correct answer is Option (2) → Difficult.

During a bearish phase of the stock market, investor sentiment tends to be negative, and stock prices often fall. In such conditions, companies may find it difficult to raise equity capital because potential investors may be hesitant to buy shares, fearing further losses. The company may also have to offer a lower valuation or higher discounts to attract investors, which makes raising equity capital more challenging.