A manufacturer who wants to build a new plant will source funds from the
Answer Details
A manufacturer who wants to build a new plant will typically source funds from the capital market. The capital market is a financial market where long-term securities such as stocks and bonds are traded between investors and borrowers. In this case, the manufacturer would issue bonds or stocks to raise the funds needed to build the new plant. Investors who purchase these securities would be lending money to the manufacturer, in exchange for a promise of future returns. The capital market offers a way for companies to access large amounts of funds for long-term projects, such as building a new plant, which can be expensive and require a significant investment. Therefore, the capital market is an important source of funding for manufacturers and other companies seeking to undertake large-scale projects.