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Question

……………… is the way of raising funds by issue of shares or of convertible securities by a company to a select group of persons which is neither a public issue nor a rights issue.

A Bonus Issue Correct Answer Incorrect Answer
B Raising money through stock exchange Correct Answer Incorrect Answer
C Private Placement Correct Answer Incorrect Answer
D Going to general public and asking for issue through local newspaper Correct Answer Incorrect Answer
E All of the above Correct Answer Incorrect Answer

Solution

     Private Placement is the way of raising funds by issue of shares or of convertible securities by a company to a select group of persons which is neither a public issue nor a rights issue. The primary market can raise the funds for the first time through IPO (Initial Public Offer) or through Follow-On Public Offer (all the offers subsequent to the initial public offer). A qualified institutional placement is a private placement of equity shares or securities convertible into equity shares by a listed company to Qualified Institutional Buyers only.

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