During a bearish phase of stock market, company should make use of _____.
During a bearish phase of stock market, company should make use of _____.
Solution
✅ Correct Option: 2
In a bearish market, share prices are low, so issuing equity or preference shares would raise less money per share and also dilute ownership. Retained profits are internal but limited. Debentures are debt instruments whose issue price is not directly affected by share market sentiment, so companies prefer debentures in a bearish phase.
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