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.