CUET Preparation Today
| A Limited has sold an entire lot of 6,00,000 equity shares @ Rs 10 each to Equity Bank Private Limited. The bank in turn will offer the shares to general public for subscription @ Rs 12 per share. Identify the method of floatation being described in the given lines. |
Private placement Offer through prospectus Offer for sale Rights issue |
| Offer for sale |
| Under this method securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers. In this case, a company sells securities enbloc at an agreed price to brokers who, in turn, resell them to the investing public. |
