When Internet coupon site Groupon sold stock to the public for the first time following its IPO in November 2011,it did so through the NASDAQ market.This was an example of Groupon using ________ to raise funds.

Question

Quizplus · Accepted Answer

Groupon selling stock to the public through the NASDAQ market is an example of direct finance, where a firm raises funds directly from investors by issuing securities such as stocks or bonds. Indirect finance involves financial intermediaries such as banks and mutual funds, which pool funds from many investors to lend to borrowers. Bonds are a type of debt security, which can be issued by corporations or governments to raise funds, but they are not relevant in the context of Groupon's stock issuance. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled, and is not related to Groupon's method of fund raising.

When Internet Coupon Site Groupon Sold Stock to the Public