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Question

The third stage in the formation of a Joint Stock Company is ____________.

A
incorporation
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B
capital raising
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C
promotion
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D
investment
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Solution

The correct option is A capital raising
The third stage in the formation of Joint stock company is Capital subscription or raising. At this step, a company is allowed to raise their funds from general public by issuing shares and debentures. But before that it has to issue a prospectus for the public to subscribe to the capital of company.

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