24 Views

Question : Which of the following statement is correct?
Statement 1: Under offer for sale method firstly the new securities are offered to an intermediary.
Statement 2: Under public issue method, it is used by those companies who have already issued their shares.
 

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.


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Statement 1 is true and statement 2 is false.
 


Solution : Under the offer for sale method, the new securities are first offered to an intermediary, such as an investment bank, which then sells the securities to the public.

Under the public issue method, securities are offered directly to the public for subscription. It can be used by both companies that have already issued shares as well as those that are issuing shares for the first time.

Hence, option C is correct.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Indus University M.Tech Admis...
Apply
Highest CTC 26 LPA | Top Recruiters: Accenture, TCS, Tech Mahindra, Capgemini, Microsoft
Greater Noida Institute of Te...
Apply
NAAC A+ Accredited | Highest CTC 70 LPA | Average CTC 6.5 LPA | 400+ Recruiters
Vignan's Deemed to be Univers...
Apply
70th University Ranked by NIRF | 80th Engineering Rank by NIRF | Accredited by NBA and NAAC A+
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
UPES B.Tech Admissions 2026
Apply
Last Date to Apply: 26th March | Ranked #43 among Engineering colleges in India by NIRF | Highest Package 1.3 CR , 100% Placements
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books