Question : Case Study 17:
JKL Inc. is a startup in the education sector aiming to raise funds for developing online learning platforms.
Question :
JKL Inc. wants to raise capital for its online learning platform development. Which market activity would be relevant for this purpose?
Option 1: Private Placement
Option 2: Currency swap
Option 3: Mergers and acquisitions
Option 4: IPO (Initial Public Offering)
Correct Answer: IPO (Initial Public Offering)
Solution : The correct answer is (d) IPO (Initial Public Offering)
An IPO is the first time a company's stock becomes available for public purchase on a stock exchange. This is a relevant option for JKL Inc. to raise capital for its online learning platform development. Going public through an IPO allows the company to issue new shares to the public and raise funds for its projects, expansion, or other business initiatives. It's a common method for startups and growing companies to access a broader investor base and generate substantial capital for their business objectives.
To raise short-term funds for marketing its online learning platforms, which money market instrument might JKL Inc. use?
Option 1: Corporate bond
Option 2: Call money
Option 3: Commercial paper
Option 4: Treasury bill
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