Anek Ltd. Issued a public offer to raise Rs. 70 lakh equity from primary market. In the process of floating the issue, it incurred certain expenses like brokerage, commission, printing of application, advertising etc. Identify the money market instrument that can be used for financing this cost.
Anek Ltd. Issued a public offer to raise Rs. 70 lakh equity from primary market. In the process of floating the issue, it incurred certain expenses like brokerage, commission, printing of application, advertising etc. Identify the money market instrument that can be used for financing this cost.
Solution
✅ Correct Option: 3
Commercial paper is an unsecured promissory note issued by large and creditworthy companies to meet short-term financial requirements, including bridge financing for expenses related to floating new issues like brokerage, advertising, and printing costs.
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