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
Correct Answer: Right issue
Solution : This method is used by those companies who have already issued their shares. When a company issue new shares, first of all it invites is existing shareholders. This is called the right issue. In this case the shareholder has the right either or accept the offer for himself or assign a part of all of his right in favour of another person.
Hence, option C is correct.