Advertisements
Advertisements
Question
The Finance Manager of Elle Pharma Limited, Mr. Ashish Manjrekar, wants to raise funds through debt or equity to the extent of ₹ 2 crores. For this purpose, he approaches a well-regulated financial market that facilitates the mobilisation of long-term capital for companies. Identify the market where Mr. Ashish Manjrekar can raise the funds.
Options
Money market
Secondary market
Capital market
Wholesale debt market
Advertisements
Solution
Capital market
Explanation:
The capital market is a well-regulated financial market where long-term funds are raised through debt and equity instruments such as shares and debentures. Since Mr. Ashish Manjrekar of Elle Pharma Limited wants to raise ₹ 2 crores for long-term purposes, the appropriate market for raising such funds is the capital market, not the money or secondary market.
