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 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: 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: 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 of the following statement is incorrect?
 

Option 1: Company issues capital to public through online system of stock exchange is known as private placement of shares.
 

Option 2: Company offers the new shares to existing shareholders in proportion of shares already held by them is known as rights issues
 

Option 3: Company invites public to apply for its securities through issues of  prospectus it is known as offer through prospectus.
 

Option 4: None of the above