Advertisements
Advertisements
Question
Explain the following term/concept.
Private placement
Solution
(a) If a company offers shares to a selected group of investors, not exceeding 200 to raise capital, is called private placement.
(b) The selected group can be mutual funds, banks, insurance companies, pension funds and so on.
APPEARS IN
RELATED QUESTIONS
Write a word or a term or a phrase which can substitute the following statement.
Pre-emptive right given to existing Equity shareholders to subscribe to new issue of shares by company.
State whether the following statement is true or false.
Floor price is the highest bid price under Book Building method.
Find the odd one.
Complete the sentence.
In Book Building Method, the final price at which shares are offered to investors is called as ______
Answer in one sentence.
Name the capital which is mentioned in the capital clause of Memorandum of Association.
Correct the underlined word and rewrite the following sentence:
FPO refers to offering of shares to the public for the first time.
Explain the following term/concept.
Subscribed capital
Explain the following term/concept.
Minimum subscription
Explain the following term/concept.
Initial Public Offer
Explain the following term/concept.
Further Public Offer
Study the following case/situation and express your opinion.
Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.
- Authorised capital
- Subscribed capital
- Issued capital
Initial Public Offer and Further Public Offer
Answer in brief.
State the provisions related to Bonus Shares.
Give one word or phrase for the following sentence:
Process of offering shares of the company to the public for the first time.
What is Employee Stock Purchase scheme?
Explain Pricing methods to offer shares to the public.
Give one word or phrase for the following sentence:
Full form of SARS.
Sai Ltd. Company is newly incorporated public company and wants to raise capital by selling equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters:
- What should the company offer – IPO or FPO?
- Can the company offer Bonus shares to raise its capital?
- Can the company enter into Underwriting Agreement?
