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Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Match the following.

1. Offer for Sale A. Privilege given to existing shareholders to subscribe to a new issue of shares
2. Private Placement B. Securities are issued through intermediaries like stockbrokers etc.
3. Rights issue C. Issuing capital to the public through online system of stock exchange
4. e-IPOs D. Allotment of securities to institutional investors and some selected individuals
Options:

1-D, 2-B, 3-A, 4-C

1-C, 2-A, 3-D, 4-B

1-B, 2-D, 3-A, 4-C

1-A, 2-B, 3-D, 4-C

Correct Answer:

1-B, 2-D, 3-A, 4-C

Explanation:

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 stockbrokers.

Private Placement: Private placement is the allotment of securities by a company to institutional investors and some selected individuals.

Rights issue: This is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company.

e-IPOs: A company proposing to issue capital to the public through the on-line system of the stock exchange has to enter into an agreement with the stock exchange. This is called an Initial Public Offer (IPO).

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