Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
Which of the following method means the direct sale by a company of its securities to a limited number of sophisticated investors?
Options:
Institutional Issue
Private Issue
Rights Issue
Private Placement
Correct Answer:
Private Placement
Explanation:
Private placement means the direct sale by a company of its securities to a limited number of sophisticated investors. Entrepreneurs, herein, raise funds by selling the issues mainly to the institutional investors.