This is the popular method of raising capital these days by the entrepreneur. This involves raising of funds directly from the public through the issue of prospectus. The above lines refer to.

Public issue

The correct answer is option (3) - Public issue.

Public issue is the most popular method of raising capital these days by the entrepreneurs. This involves raising of funds directly from the public through the issue of prospectus. An enterprise organizing itself as a public limited company can raise the required funds commonly by preparing a prospectus. When an entrepreneur a offers shares to the public for subscription he/she is required to comply with all the restrictions and formalities pertaining to the initial issues, prospectus drafting and launch.

Private placements, right issues, and offers of employees do not involve raising capital directly from the public through a prospectus issuance. They have different target audiences and mechanisms for raising capital.