Consider the following statements:
1. Issuing a share
2. Selling a share
3. Issuing a bond
Which among the above is / are done for the purpose of raising equity capital?

Answer: [B] 1 & 3

Issuing a share and selling a share are two different things, which are done in primary and secondary markets respectively. In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading avenue in which already existing/pre- issued securities are traded amongst investors.

This question is a part of GKToday's Integrated IAS General Studies Module