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Question

The process by which demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities is called ________.

A
Offer for sale
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B
Private placement
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C
Book building
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D
None of these
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Solution

The correct option is A Book building
Book building is a systematic process of generating, capturing, and recording investor demand for shares. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or bookrunner.

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