Answer the questions on the basis of following passage:-

Adhunik Ltd is a consumer goods manufacturing unit running the business for the last 11 years. The C.E.O Mr. Aman wants to raise capital with an objective to modernise the existing plant. For this he has made a plan to offer equity and preference shares in the primary market. He uses a combination of methods. He got the prospectus printed, so as to make a direct appeal to investors. Also he has invited offers from some brokers to buy shares at an enbloc value. Since Mr. Aman has a great circle of friends who are institutional investors, he can soon gather capital. Another method, that he wants to use is the online system of stock exchange.

In the above case Mr Aman is using all methods of floatation which are used in primary market because......

It deals in new securities issued for the first time

The correct answer is Option (1) - It deals in new securities issued for the first time.

In the primary market, new securities are issued for the first time, and this is where companies raise capital by selling these securities directly to investors. Mr. Aman is using a combination of methods, including offering equity and preference shares, printing a prospectus for a direct appeal to investors, inviting offers from brokers, leveraging his institutional investor friends, and utilizing the online system of the stock exchange. All these methods involve the issuance of new securities in the primary market to raise capital for the purpose of modernizing the existing plant.