Question

1.

There are 2 primary ways companies raise capital. They are:

Options and futures.

Getting a loan and issuing stock.

Asking family and friends.

A trust and a bank loan.

2.

Companies can raise money and not go into debt by:

Buying bonds

Issuing bonds

Issuing stock

Buying stock

3.

The three most widely followed indices in the U.S. stock market are:

Standard & Poor’s 500 Index

Dow Jones Industrials

Nasdaq

Apple

Answer 1

1. Option (b) is correct.

Getting a loan and issuing stock are the two primary ways by which the companies raise capital. Companies get loans by issuing bonds and they also raise the required capital by issuing common stock and / or preferred stock.

2. Option (b) is correct.

Companies can raise money and not go into debt by issuing stock.

By issuing bonds company go into debt. And by buying bonds or buying stocks, company spends money rather than raising the money.

3. Three most widely followed indices in the U.S. stock market are:

Standard & Poor's 500 index, Dow Jones industrials & Nasdaq.