Question

(1) During the period of boom in the share market__________
are issued to raise capital
​

Answer 1

Answer:

yes because the value of share is high at that time

Answer 2

During the period of boom in the share market, new shares are issued to raise capital.

Explanation:

• The period of Boom is a condition when the company's or any business activities are increased due to higher expectations of the consumer market.
• If one owner's business or company is discussed, then its boom period can be considered a period when its sales growth is high.
• If any nation or country is asked for the boom period, there should be the highest GDP growth of the country's economy.
• In the share market, many companies are owing to their shares and earning or losing lots of money.
• When any company either sole proprietorship business or public or private limited wants to raise capital, they will issue new shares of their company.
• Issuing new shares can input a high amount of cash flow in the company to invest and grow big.

To Know More

State any four limitations of raising funds through equity shares.

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