New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

     Which of the following statement is correct in

    corelation to the term “offer for sale” (OFS)?
    A Promoters of public company sells their share and reduce their holdings through Secondary Market Correct Answer Incorrect Answer
    B OFS results in fresh raising of funds. Correct Answer Incorrect Answer
    C Existing shareholder dilutes their stake through the primary market. Correct Answer Incorrect Answer
    D OFS is the other name of IPO Correct Answer Incorrect Answer
    E None of the above. Correct Answer Incorrect Answer

    Solution

    An offer-for-sale is different from an IPO and an FPO in the sense that an OFS does not result in fresh raising of funds. In an OFS, an existing shareholder dilutes their stake through the primary market.

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