A public limited company can raise long-term loans through

Assessment: JAMB UTME - Commerce - 2020 Subject: Commerce

Question 1 Report

A public limited company can raise long-term loans through
Answer Details
A public limited company can raise long-term loans through "the capital market." The capital market refers to a market where long-term debt and equity securities are traded. It is a market for long-term investments, where public limited companies can raise funds by issuing stocks and bonds. Stocks represent ownership in the company, while bonds are a form of debt that the company promises to repay with interest over a specified period of time. In simple terms, the capital market provides a platform for public limited companies to raise long-term funding from investors by issuing securities. By accessing the capital market, public limited companies can secure the funding they need to finance growth and expansion plans, without the restrictions of short-term loans or bank overdrafts.

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