Raising of funds to meet floatation cost of new issues is known as ___.

Price rigging

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Bridge financing

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Price fixing

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None of the above

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Solution

The correct option is B
Bridge financing

Raising funds to meet floatation cost of new issues is known as bridge financing.

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Similar questions

"Mission Coach" is a large creditworthy company manufacturing coaches for Indian Railways. It now wants to export these coaches to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expense of floatation cost, the company decides to tap the money market.

(i) Name and explain the money market instrument the company can use for the above purpose.

(ii) What is the duration for which the company can get funds through the instrument?

(iii) State any other purpose for which this instrument can be used.

Q. The maximum amount which a company is allowed to raise funds, by issue of shares, is known as _____________.

Q. The maximum amount beyond which a company is not allowed to raise funds, by issue of shares is known as ___________.

Q. The cost of equity shares is generally _______ as compared to the cost of raising funds through other sources.

Q. The cost of equity shares is generally as compared to the cost of raising funds through other sources.

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Raising of funds to meet floatation cost of new issues is known as ___.

The correct option is B Bridge financing Raising funds to meet floatation cost of new issues is known as bridge financing.

The correct option is B
Bridge financing

Raising funds to meet floatation cost of new issues is known as bridge financing.