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.

 

Option 1: Offer for sale

Option 2: Private placement

Option 3: Right issue

Option 4: Initial public issue

 

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.

Option 1: Offer for sale

Option 2: Private placement

Option 3: Right issue

Option 4: Initial public issue

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

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.

Option 1: Offer for sale

Option 2: Private placement

Option 3: Right issue

Option 4: Initial public issue

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.

Option 1: Offer for sale

Option 2: Private placement

Option 3: Right issue

Option 4: Initial public issue

Question : Which of the following statement is correct?
Statement 1: Under offer for sale the company issues a prospectus and invite the general public to purchase shares or debentures.
Statement 2: Under private placement the company sells security to the institutional investors or brokers instead of selling them to general public.
 

Option 1: Both are true 

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.