ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.
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Offer through prospectus
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Offer for sale
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Rights issue
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Private placement
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Explanation:
Detailed explanation-1: -Hence, the correct answer is option Owners of the company.
Detailed explanation-2: -Rights shares are issued to the existing shareholders. The existing shareholders have to exercise the rights in a specified time period. Was this answer helpful?
Detailed explanation-3: -Equity shareholders are called the owners of the company.
Detailed explanation-4: -Private Placement. Make Available for purchase. Deal through Intermediaries. Deal to Inside Coterie. Deal through Managing Brokers. Special Subscriptions. Public Issue or Initial Public Offer (IPO).
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