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Bodies that can access the capital market, public companies, government. - SS3 Commerce Past Questions and Answers - page 1

1

Which type of body sells shares of its ownership to the public through an IPO?

A

Public companies

B

overnment

correct option: a

Public companies

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2

What are public companies required to disclose to the public?

A

Financial and operational information

B

Personal shareholder details

correct option: a

Financial and operational information

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3

Governments access the capital market primarily by issuing:

A

Shares of ownership

B

Corporate bonds

correct option: b

Corporate bonds

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4

Sovereign bonds are issued by:

A

National governments

B

National governments

correct option: b

National governments

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5

Who evaluates the creditworthiness of governments issuing bonds?

A

Credit rating agencies

B

Stock exchanges

correct option: a

Credit rating agencies

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6

What are some advantages for a public company to access the capital market?

Some advantages for a public company to access the capital market include the ability to raise funds for growth and expansion, increased liquidity for existing shareholders, enhanced visibility and credibility, and access to a wider pool of potential investors.

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7

How can governments utilize funds raised from issuing bonds in the capital market?

Governments can utilize funds raised from issuing bonds in the capital market for various purposes, such as financing public infrastructure projects like building roads, bridges, and schools, addressing budget deficits, refinancing existing debt, or investing in social programs and services.

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