Q44) Company “XYZ” recently issued new shares to the public for the second time in past 5 years. What will such an issue be called?

a) Initial public offer

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

b) Secondary public offer

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

c) Follow on public offer

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

d) None of the above

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

Open in App

Solution

The correct option is C
c) Follow on public offer

Ans: C
Explanation: A follow-on public offer (FPO) is an issuing of shares to investors by a publiccompany that is already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process.

Suggest Corrections

Similar questions

Q. The Directors of a Company want to modernise its plants 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 the new public issue of shares. Advise the directors whether to approach stock exchange or consultant for the 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.

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.

Q. Public companies issued shares to public through document called ________________.

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.

A company issued 10,000 shares to the public and the company received applications for 8,000 shares from the public. This situation is called ?

Join BYJU'S Learning Program