Match List I with List II
| List I | List II |
|---|---|
| A. Right issue | I. Securities are offered to issuing houses or stock brokers |
| B. Offer through Prospectus | II. Institutional investors |
| C. Private placement | III. Privilege to existing shareholders |
| D. Offer for sale | IV. Most popular method of raising funds |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-III, B-IV, C-II, D-I
(A) Right issue → (III) Privilege to existing shareholders — A rights issue is a privilege given to existing shareholders to subscribe to a new issue of shares.
(B) Offer through Prospectus → (IV) Most popular method of raising funds — It is the most popular method used by public companies in the primary market.
(C) Private placement → (II) Institutional investors — It is the allotment of securities by a company to institutional investors and some selected individuals.
(D) Offer for sale → (I) Securities are offered to issuing houses or stock brokers — Securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers.
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. NCERT (Pre-rationalised Edition):
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