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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
Answer
The primary market is where new securities are created and sold to investors for the first time, thus raising new capital for the public company. In this context, the answer is (A) Primary market of the Australian Securities Exchange, as it is a valid source for public companies to generate new capital.