ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This is called an Initial Public Offer (IPO).

Detailed explanation-2: -Securities are issued either by an Initial Public Offer (IPO) or a Further Public Offer (FPO). An IPO is the process through which a company offers equity to investors and becomes a publicly-traded company.

Detailed explanation-3: -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.

Detailed explanation-4: -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-5: -Flotation is the process of issuing and selling shares to public investors. In other words, it is when a company goes public and issues new shares to raise capital.