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 

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 : What is the purpose of an initial public offering (IPO)?

Option 1: To issue debentures
   

Option 2: To raise funds from existing shareholders
  

Option 3: To list a company's shares on a stock exchange

Option 4: To merge with another company

Question : What is the purpose of an initial public offering (IPO)?

Option 1: To issue debentures
   

Option 2: To raise funds from existing shareholders
  

Option 3: To list a company's shares on a stock exchange

Option 4: To merge with another company

Question : What is the purpose of an initial public offering (IPO)?

Option 1: To issue debentures
   

Option 2: To raise funds from existing shareholders
  

Option 3: To list a company's shares on a stock exchange

Option 4: To merge with another company

Question : A rights issue allows existing shareholders to:

Option 1: Sell their shares at a premium
 

Option 2: Buy additional shares at a discounted price
 

Option 3: Trade their shares in the secondary market

Option 4: Receive dividends from the company