Question

As an alternative to selling shares of stock as a means of raising funds, a large company could, instead, a. use equity finance. b. purchase bonds. c. invest in physical capital. d. sell bonds.

Answer 1

A large company could use selling bonds as an alternative to selling shares of stock as a means of raising funds.

What do you mean by bond selling?

The company will look for potential buyers on the market. When the company acts as principal, as it does in the majority of bond transactions, it either sells you a bond that it already has (a process known as selling the bond from inventory) or purchases the bond from you for its own inventory.

The majority of bonds pay interest twice a year until they mature. The right to receive interest payments is forfeited if a bond is sold before its maturity date.

To know more about bond selling refer to: brainly.com/question/23032254

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