Options A and C are correct. Option B is not true. Just because a share is
putable or callable does not make it any easier to sell.
Equity Investments MCQ - Equity Investments Section 2
A and C represent reasons for why a company might raise capital by
issuing equity. It is unlikely that a company will finance working capital
requirements by issuing equity.
A company issues equity on a primary market to raise capital and increase
liquidity.
To finance revenue generating activities (organic growth).The capital is
used to purchase long-term assets, invest in profit-generating projects,
expand to new territories, or invest in research and development.
