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.
Question : Which method of floating capital is highlighted in the statement? Statement: This method is referred as it is cheaper method of raising funds as compared to a public issue.
Question : Which method of floating capital is highlighted in the statement? Statement: The company sell security to the institutional investors or broker instead of selling them to the general public.
Question : Which method of floating capital is highlighted in the statement? Statement: This method is he should buy those companies who have already issued their shares.
Question : Which method of floating capital is highlighted in the statement? Statement: When an existing company issues new shares first of all it invites its existing shareholders.
Question : Which method of floating capital is highlighted in the statement? Statement: Under this method companies issues their securities through the electronic medium.
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