Identify the methods of floation of new issues in the market.

A. Public issue

B. Offer to the employees

C. Secondary markets

D. Market trading

E. Private placement

Choose the correct answer from the options given below:

A, B, E only

The correct answer is option (1) - A, B, E only.

The correct answer is A, B, E only. Here's why:

• Public issue: This involves raising capital by issuing securities directly to the public through a prospectus. It is a primary market method for a company to raise funds for the first time.
• Offer to the employees: This is a primary market method where a company offers its shares to its employees at a discounted price or through stock options.
• Secondary markets: This refers to the market where already issued securities are traded between investors. Companies do not raise capital through the secondary market directly.
• Market trading: This is a broad term encompassing the buying and selling of securities in any market, including primary and secondary. It's not a specific method of floating new issues.
• Private placement: This involves selling securities to a limited number of pre-selected investors, without a public offering. It is another primary market method for raising capital.

Therefore, public issue, offer to the employees, and private placement are all methods of floating new issues in the primary market. Secondary markets and market trading are not directly involved in raising capital for new issues.