A company wants to set up a new branch in Delhi. For additional capital, the company is planning to issue equity shares to the public as there is boom period in capital market and the public will prefer to invest.
What does this refer to?

IPO

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

ICO

No worries! We‘ve got your back. Try BYJU‘S free classes today!

IFO

No worries! We‘ve got your back. Try BYJU‘S free classes today!

IWO

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A IPO
IPO - stock market launch is a type of public offering in which shares of a company are sold to institutional investors and to retail (individual) investors.

Suggest Corrections

Similar questions

Q. Sika Ltd., a reputed industrial machines manufacturer, needs Rupees twenty crores as additional capital to expand the business. Mr. Amit Joshi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Fiance Manager, Mr. Narinder Singh, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expansive.
Name the method through which the company decide to raise additional capital.

Q. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean?
A. Shares of the company will be issued only through public sector organisations like banks/Central financial institutions etc.
B. Shares of the company will be issued to general public only through primary market.
C. This means some stakeholders/promoters are willing to leave the company. Hence they wish to sell their stock to the general public.

Fill in the blank:

The company which raises its capital by issuing shares to public is a __________.

Sike Ltd., a reputed industrial machines manufacturer, needs rupees twenty crores as additional capital to expand the business. Mr. Amit Joshi, Chief Executive Officer (CEO) of the company, wants to raise funds through equity. The Finance Manager, Mr. Narinder Singh, suggested that the shares may be sold to the public through intermediaries, as the same will be less expensive. Name the method through which the company decided to raise additional capital.

The directors of a company want to modernise its plant and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for a new public issue of shares. Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

Join BYJU'S Learning Program

A company wants to set up a new branch in Delhi. For additional capital, the company is planning to issue equity shares to the public as there is boom period in capital market and the public will prefer to invest. What does this refer to?

The correct option is A IPO IPO - stock market launch is a type of public offering in which shares of a company are sold to institutional investors and to retail (individual) investors.

A company wants to set up a new branch in Delhi. For additional capital, the company is planning to issue equity shares to the public as there is boom period in capital market and the public will prefer to invest.
What does this refer to?

The correct option is A IPO
IPO - stock market launch is a type of public offering in which shares of a company are sold to institutional investors and to retail (individual) investors.