Question : Which method of floating capital is highlighted in the statement?
Statement: Advantage of doing this is that the issuing company feels free from tedious work of making a public issue.
Option 1: Offer for sale
Option 2: Private placement
Option 3: Right issue
Option 4: Initial public issue
Correct Answer: Offer for sale
Solution : Under offer for sale firstly the new securities are offer to an intermediary at a fixed price. They further resell the same to the general public. The advantage of doing this is that the issuing company feels free from the tedious work of making a public issue.
Hence, option A is correct.