With reference to Social Stock Exchange (SSE), consider the following statements:1.It is a platform that allows social enterprises to raise funds from the public. 2.Only social enterprises that are profitable can be listed on the SSE.3.Zero coupon zero principal instruments are a type of financial instrument used in SSE that combines debt and equity.How many of the above statements are correct?

Q. With reference to Social Stock Exchange (SSE), consider the following statements:
1.It is a platform that allows social enterprises to raise funds from the public.
2.Only social enterprises that are profitable can be listed on the SSE.
3.Zero coupon zero principal instruments are a type of financial instrument used in SSE that combines debt and equity.
How many of the above statements are correct?

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: A

Notes:

Explanation –

Statement 1 is correct. SSE is a platform that allows social enterprises to raise funds from the public. Social enterprises are businesses that have a social mission, such as providing affordable housing or education, or protecting the environment.

Statements 2 and 3 are incorrect. SSE is designed to support social enterprises of all sizes and stages, including those that are not yet profitable. Its goal is to provide social enterprises with access to capital, regardless of their financial status. Zero coupon zero principal instruments are debt instruments that do not pay interest and do not have a principal repayment. They are designed to be used by social enterprises that do not have a clear track record of generating profits.

Source: ForumIAS

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