24 Views

Question : Which of the following statement is correct?
Statement 1: Under offer for sale method firstly the new securities are offered to an intermediary.
Statement 2: Under public issue method, it is used by those companies who have already issued their shares.
 

Option 1: Both are true 
 

Option 2: Both are false
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 1 is false and statement 2 is true.


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Statement 1 is true and statement 2 is false.
 


Solution : Under the offer for sale method, the new securities are first offered to an intermediary, such as an investment bank, which then sells the securities to the public.

Under the public issue method, securities are offered directly to the public for subscription. It can be used by both companies that have already issued shares as well as those that are issuing shares for the first time.

Hence, option C is correct.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC | Ranked 33rd by NIRF 2025
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
IMT Ghaziabad PGDM Admissions...
Apply
AACSB, NBA & SAQS Accredited | H-CTC 41.55 LPA | Merit Based Scholarship
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
MAHE Online MBA
Apply
Apply for Online MBA from Manipal Academy of Higher Education (MAHE)
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books