Question : Case Study 8:
JKL Ltd. is a real estate company planning to raise funds for a large-scale construction project.
Question :
JKL Ltd. wants to raise capital for its construction project. Which market should it consider for issuing new securities?
Option 1: Primary market
Option 2: Secondary market
Option 3: Money market
Option 4: Capital market
Correct Answer:
Primary market
Solution : The correct answer is (a) Primary market
JKL Ltd. should consider the primary market for issuing new securities to raise capital for its construction project. The primary market is where newly issued securities, such as stocks and bonds, are offered and sold to investors for the first time. In this market, JKL Ltd. can issue new shares or bonds directly to investors and raise the necessary funds to support its large-scale construction project.
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