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Question

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.

A
Only (A)
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B
Only (B)
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C
Only (C)
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D
All (A), (B) and (C)
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Solution

The correct option is D Only (A)
When a company brings a public issue, shares of the company will be issued only through public sector organizations like banks/central bank or any financial institutions. It means, public can buy shares through the public sector organizations only.

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