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
Correct Answer: Private placement
Solution : Under this method the company sell security institutional investors or brokers instead of selling them to the general public. Then turn sell of security to the selected clients at a higher price. This method is preferred as it it is a cheaper method of raising funds as compared to a public issue.
Hence, option B is correct.
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: Advantage of doing this is that the issuing company feels free from tedious work of making 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: 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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