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Question

__________ is the allotment of securities by a company to institutional investors and some selected individuals.

A
Offer for Sale
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B
Private Placement
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C
Rights Issue
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D
E-IPOs
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Solution

The correct option is B Private Placement
Private placement is the allotment of securities by a company to institutional investors and some selected individuals. It helps the company to raise funds for capital more quickly than through a public issue. This method is chosen by the companies that cannot afford to raise capital through a public issue.

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