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Question : Case Study 21:

ABC Enterprises is a startup in the renewable energy sector aiming to raise funds for its innovative projects.

Question :

ABC Enterprises is looking to raise capital for its renewable energy projects. Which type of market activity would be associated with this goal?

Option 1: Primary market
 

Option 2: Currency swap
 

Option 3: Mergers and acquisitions

 

Option 4: Secondary market trading


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Primary market
 


Solution : The correct answer is (a) Primary market

In the primary market, companies issue new securities, such as stocks or bonds, to raise funds directly from investors. ABC Enterprises would be initiating this process by offering its innovative projects' securities to investors for the first time, generating the necessary capital to support their renewable energy initiatives.

 

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