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Question

Select the term or a phrase which can substitute the following statement:
Name the company which raises it's capital by issuing shares to public.

A
Joint stock company
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B
Private company
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C
Public company
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D
Government organisation
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Solution

The correct option is C Public company
Public Company is the Company which raises its capital by issuing shares to the public which means if a company need fund for the company they can issue shares as a means of raising additional capital to fund business operations. Only public companies can issue shares by getting themselves registered with SEBI & further listing themselves in any of the stock exchanges as there is no restriction on these companies for the transferability of shares but private companies can not do so.
Thus the correct answer is C.

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