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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


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

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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