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Basic Question 1 of 5

The primary goal of raising capital in the equity market is to ______.

A. finance the company's revenue-generating activities
B. ensure debt covenants are met
C. improve capital adequacy ratios

User Contributed Comments 1

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praj24 Primary!!
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain the role of equity securities in the financing of a company's assets

contrast the market value and book value of equity securities

compare a company's cost of equity, its (accounting) return on equity, and investors' required rates of return

CFA® 2025 Level I Curriculum, Volume 3, Module 4.