Investorowned forprofit firms receive the proceeds from stoc

Investor-owned (for-profit) firms receive the proceeds from stock sales in which of the following markets?

Solution

There are generally two type of firm, investor owned firm and not for profit firm. The investor owned firms operate to earn profit and maximize the value of firm while not for profit firm operate to help societies for improve the standard.

Primary goal of investor-owned corporations is mention below:

1. To maximize the earnings of the corporation

2. To maximize the shareholder wealth by increasing value of stock.

3. To pay dividend to sharehold4r on regular basis.

Investor-owned (for-profit) firms receive the proceeds from stock sales in IPO market or primary market.

So, option (D) is correct answer.