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Question

When the stock market index is rising, a company may issue _____ in order to meet its financial requirements.


A

Bonds

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B

None of the above

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C

Equity shares

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D

Debentures

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Solution

The correct option is C

Equity shares


Answer (C) Equity shares

Explanation: Equity shares are long-term financing resources for any organization. These issues are given to the general population and are non-redeemable in nature. Investors in such issues hold the option to cast a vote, share benefits, and can claim the resources of an organization. An organization can issue equity shares to meet its requirements when the stock market index is rising.


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