Question
Which of the following statements is/are correct regarding Initial Public Offering (IP
- O in India? 1)An IPO is a process by which a company raises funds by selling its shares to the public for the first time 2)An IPO can only be done by unlisted companies in India. 3)It is a process by which a private company becomes public.
Solution
Statement 1 is correct as an IPO is a process by which a company raises funds by selling its shares to the public for the first time. Statement 2 is incorrect as even listed companies can undertake an IPO in India to raise additional funds.
More Financial Management Questions
- Match the following types of demand with their correct descriptions: 1. Market Demand 2. Autonomous Demand 3. Individual Demand Schedule A. When the demand...
- What concept, introduced by Frederick Herzberg, refers to factors that, when present, contribute to job satisfaction, but when absent, do not cause dissati...
- Which of the following is correct about Commercial Papers (CP)?
- Which of the following is NOT a difference between a commercial bank and a cooperative bank?
- What is considered as the life spark of management and includes motivating, guiding, influencing and supervisingthe employees?
- According to the "Great Man Theory" of leadership, what is the belief about leadership qualities?
- In which of the following activities do merchant banks typically participate but investment banks generally do not?
- What relationship exists between the average collection period and accounts receivable turnover?
- A company is preparing its annual budget and decides that no department will automatically receive last year’s allocation. Instead, every activity must be ...
- What is the alpha factor set by Basel Committee relating to the industry wide level of required capital for operational risk, under the Basic Indicator App...
