Options
-
It indicates the price at which new capital can be raised
Correct answer
- B
Promoters sell shares at current market prices to raise funds
- C
It has no effect on primary capital raising
- D
It restricts the issue price of new shares
Why this is the answer
The secondary market price helps determine the valuation and pricing of new issues like rights offerings.
Test yourself for real
Take a full NISM Series X mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.