wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Some companies cannot afford a public issue and choose to use private placement because ________.

A
access to the primary market can be expensive on account of various mandatory and non-mandatory expenses
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
SEBI registered brokers have to be appointed for the purpose of accepting applications
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
securities are not issued directly to the public
No worries! We‘ve got your back. Try BYJU‘S free classes today!
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 A access to the primary market can be expensive on account of various mandatory and non-mandatory expenses
Some companies cannot afford a public issue and choose to use private placement because access to the primary market can be expensive on account of various mandatory and non-mandatory expenses. The process of listing company's shares in stock exchange involves huge expenses.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Methods of Flotation
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon