BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Placing only
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Placing, Public offer and Introduction
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Public offer only
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None of the above
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Detailed explanation-1: -It is system of issuing securities through online system. If a company decides to offer its securities through an online system it is required to gets into an agreement with the stock exchange. This is called Initial Public Offer (IPO). Company appoints brokers for accepting applications and placing orders.
Detailed explanation-2: -Numerous methods can achieve floatation in the primary market and secondary market. These methods are five, including private placement, ESOP, bonus reserves, rights issues, and public issues. Public Issue is the most commonly used method by the companies of India.
Detailed explanation-3: -Flotation is the process of converting a private company into a public company by issuing shares available for the public to purchase. It allows companies to obtain financing externally instead of using retained earnings to fund new projects or expansion.
Detailed explanation-4: -Class 12 Business Studies Chapter 10 | Primary Market and Methods of Floatation (2022-23)
Detailed explanation-5: -Offer for Sale: Under this method, securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers. Private Placement: Private placement is the allotment of securities by a company to institutional investors and some selected individuals.