JAMB Commerce 2007 Question 46

Question 46

Stock Exchange

A new company requiring a large amount of equity finance may source funds from the

  1. A.capital market
  2. B.central bank
  3. C.money market
  4. D.commercial banks.
Show the answer and explanation

Answer: A (capital market)

Explanation

Long-term equity funds are raised by selling shares on the capital market.