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JAMB Economics 1990 Question 26

Question 26

Business Organisations

Capital provided by individuals to the firm by purchasing stocks is called

  1. A.debt capital
  2. B.fixed capital
  3. C.circulating capital
  4. D.equity capital
Show the answer and explanation

Answer: D (equity capital)

Explanation

Money raised by selling shares gives the buyers part-ownership of the firm; this is equity capital.