Which of the Following Is NOT a Source of Equity

question 58

Multiple Choice

Which of the following is NOT a source of equity funding?

• A) Initial public offering
• B) Angel investors
• C) Private placement
• D) Venture capital
• E) Government grants

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Definitions:

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

No-Par Stock

No-Par Stock is a class of shares which does not have a nominal or face value assigned to them, meaning the value of the shares is determined by the amount investors are willing to pay for them in the market.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential for dividends.

Stock At A Premium

Stock at a premium refers to shares that are sold for a price higher than their par value, often reflecting the issuing company's perceived value and growth prospects.