From a Company's Viewpoint,the Existence of an Active,liquid,well-Organised Market in Existing

question 17

Multiple Choice

From a company's viewpoint,the existence of an active,liquid,well-organised market in existing shares:

• A) facilitates the raising of further capital in the secondary market.
• B) maintains the share price above the initial issue price.
• C) encourages successful primary market issues.
• D) is of little or no consequence.

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Definitions:

Taxation

The imposition of financial charges or other levies upon a taxpayer by a governmental organization in order to fund various public expenditures.

Limited Liability

A legal principle that limits an investor's losses to the amount of their investment, protecting personal assets beyond the investment in the company.

Corporate Profits

The residual income of businesses after paying all expenses, including taxes and operating costs, often reported quarterly or annually.

Corporate Directors

Members of a company's board of directors, elected by shareholders, responsible for overseeing the management and making key decisions affecting the company's direction.