Question

Study the following case/situation and express your opinion.

Jack & Jones, a newly incorporated organization wants to raise capital for the first time by issuing equity shares.

1. Should it go for Primary Market or the Secondary Market?
2. What will be the issue of equity shares by Jack & Jones called?

Answer 1

1. As a newly incorporated organization, Jack and Jones should target the primary market, where the company organizes the sources of finance for capital appreciation.
2. The shares of Jack & Jones will be issued in the stock market for the first time as an Initial Public Offering.