Question

'Vision Ltd.' offers stock options to its employees. This enables employees to become shareholders of the company, leading to higher efficiency and lower labour turnover.

The method of floatation of new issues being used by 'Vision Ltd.' is ______.

Options

• Public issue

• Rights issue

• Private placement

• Offer to employees

Answer 1

The method of floatation of new issues being used by 'Vision Ltd.' is offer to employees.

Explanation:

Offering stock options to employees is a method of floatation where shares are issued specifically to employees, enhancing their motivation and engagement with the company.