Define Floating.

Define Floating.

• A. Raising money through the sale of shares on the ASX
• B. Issuing bonds on the London Stock Exchange
• C. Borrowing from a bank
• D. Reinvesting profits back into the business

Answer: (A)

Floating is when a company raises capital by selling its shares to the public and listing on a stock exchange for the first time. This process, called a float or flotation, brings in equity funding from investors who own part of the company. In Australia, this typically happens on the ASX, turning ownership into publicly traded shares. The other options describe different ways to fund a business: issuing bonds on the London Stock Exchange is debt financing, borrowing from a bank is a loan, and reinvesting profits back into the business is internal funding. So floating is best defined as raising money through the sale of shares on the ASX.

Floating is when a company raises capital by selling its shares to the public and listing on a stock exchange for the first time. This process, called a float or flotation, brings in equity funding from investors who own part of the company. In Australia, this typically happens on the ASX, turning ownership into publicly traded shares. The other options describe different ways to fund a business: issuing bonds on the London Stock Exchange is debt financing, borrowing from a bank is a loan, and reinvesting profits back into the business is internal funding. So floating is best defined as raising money through the sale of shares on the ASX.