Question

Identify the correct statements about Crowdfunding.

1. (P) Funds are raised from high net-worth individuals.
2. (Q) Small contributions are raised from a large group of individuals.
3. (R) Funds are secured through the stock market.
4. (S) Funds are sourced from Reserve Bank of India.

विकल्प

• Only (P) and (Q)

• Only (Q) and (R)

• Only (R) and (S)

• Only (S) and (P)

Answer 1

Only (P) and (Q)

Explanation:

The fundamental definition of crowdfunding is stated in Statement (Q): collecting modest amounts from a “crowd”. In the context of “Equity Crowdfunding,” where high-net-worth people or accredited investors purchase a stake in a firm, statement (P) is also accurate. The RBI (S), a regulatory central bank, and the official stock market (R), which is for public enterprises, are not involved.