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

(a) Bonds

(b) None of the above

(c) Equity shares

(d) Debentures

Answer (c) Equity shares

Explanation: Equity shares are long-term financing resources for any organisation. 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 organisation. An organisation can issue equity shares to meet its requirements when the stock market index is rising.

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