Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
Which of the following method of issue of shares is known as "Going Public"?
Options:
Rights Issue
Public Issue
Private Placement
All of these
Correct Answer:
Public Issue
Explanation:
Public Issues is also called as going Public as the shares are offered by a company to the public. Public issue is the most popular method of raising capital these days by the entrepreneurs. This involves raising of funds directly from the public through the issue of prospectus. An enterprise organizing itself as a public limited company can raise the required funds commonly by preparing a prospectus.