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 is a market for long-term investment that provides a platform for companies to raise capital by issuing securities such as shares and bonds. In the case of a public limited company, it can issue shares to the public and raise funds for its long-term financing needs. The capital market provides access to a wide range of investors, including institutional investors, retail investors, and foreign investors, who are willing to invest in companies for a long period of time. This enables the public limited company to raise substantial amounts of capital, which can be used for various purposes such as expansion, research and development, and acquisition of new assets. While a public limited company can also raise short-term loans through the money market, such as bank overdrafts and discount houses, these are typically used for short-term financing needs and are not suitable for long-term financing. Therefore, the capital market is the preferred option for a public limited company to raise long-term loans.