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A company can raise capital through the primary market in the form of
Equity shares
Preference shares
Debentures
All of the above
- Equity shares: These represent ownership in a company. When a company issues equity shares in the primary market, it raises capital from investors by offering ownership stakes.
- Preference shares: These are a type of equity with preferential rights. They typically offer dividends before any is paid to equity shareholders and have a higher claim on assets in case of liquidation.
- Debentures: These are a type of debt instrument. When issued in the primary market, they offer investors fixed interest returns, adding to the company's capital through borrowing.
- Answer: Option 4 - All of the above. Companies can indeed raise capital through any of these instruments in the primary market.
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