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Which of the following are related to primary capital market? A. IPO B. Long Term Loans C. Venture Capital D. Letters of Credit E.
Question



Which of the following are related to primary capital market?
A. IPO
B. Long Term Loans
C. Venture Capital
D. Letters of Credit
E. Participation Certificates
Choose the most appropriate answer from the options given below:
Codes

A.

A, B and E only

B.

C, D and E only

C.

A, B and C only

D.

A, D and E only

Correct option is C

The primary capital market involves the issuance of new securities directly to investors. The options that are related to the primary capital market are:
IPO (Initial Public Offering): It is the process by which a company offers its shares to the public for the first time, allowing them to become shareholders in the company.
Long Term Loans: While long-term loans are not directly related to the primary capital market, they can be a source of funding for companies in need of capital for their operations.
Venture Capital: Venture capital involves providing funding to early-stage or startup companies with high growth potential, usually in exchange for an equity stake in the company.
Letters of Credit: Letters of credit are not directly related to the primary capital market. They are financial instruments used in international trade to ensure payment security between buyer and seller.
Participation Certificates: Participation certificates are not directly related to the primary capital market. They are investment instruments that represent an investor's share in a pool of assets, such as a mortgage pool or a collection of loans.
Therefore, the options a, b, and c are related to the primary capital market.

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