Question

When the stock market is bearish, a company may depend upon ______ in order to raise the required funds.

• A. Debentures
• B. Preference shares
• C. All of the above
• D. Equity shares

Answer 1

The correct option is A

Debentures

Answer (a) Debentures

Explanation: Debentures are a debt instrument utilized by organizations and governments to give credit. Debentures are otherwise called a bond that fills in as an IOU among purchasers and issuers. Organizations use debentures when they need to borrow cash at a fixed rate of interest for their development. In a bearish stock market, an organization can depend upon debentures in order to raise the required funds.