CUET Preparation Today
| Assertion (A): Under private placement, the company offers the new shares to its existing shareholders in proportion of shares already held by them. Reason (R): Private placement method helps to raise capital more quickly as compared to public issue. |
Both A and R are true and R is the correct explanation of A
Both A and R are true but R is not the correct explanation of A
A is true but R is false
A is false but R is true
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| A is false but R is true |
| Under Rights issue the company offers the new shares to its existing shareholders in proportion of shares already held by them. |
