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Is it possible that a public company to raise capital from a secondary market? |
Is it possible that a public company to raise capital from a secondary market? Of course it is possible. What is your definition of secondary market and of capital? A public company can obtain capital by borrowing from a bank, by entering into a leasing arrangement, or issuing a bond, etc. In this context raising capital means obtaining financing to acquire capital assets. If you mean raising equity capital, it can be done by selling preferred stock or treasury stock to a private investor. Issuing preferred stock may require a shareholders' vote. The company can also offer to issue new shares directly to its shareholders without making a public offering. |
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