ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Initial public offer
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Offer through prospectus
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Private placement
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Offer for sale
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Detailed explanation-1: -Private placement is the allotment of securities by a company to institutional investors and some selected individuals. It helps the company to raise funds for capital more quickly than through a public issue. This method is chosen by the companies that cannot afford to raise capital through a public issue.
Detailed explanation-2: -What Is Private Placement? Private placement is a common method of raising business capital by offering equity shares. Private placements can be done by either private companies wishing to acquire a few select investors or by publicly traded companies as a secondary stock offering.
Detailed explanation-3: -Private placement by companies means offering its securities or inviting to subscribe its securities for a select group of persons other than by way of a public issue through a private placement offer letter.