Question

Which of the following is/are a method of flotation in the primary market?

• A. Offer through prospectus
• B. Offer for sale
• C. Private placement
• D. All of the above

Answer 1

The correct option is D All of the above

There are various methods of floating new issues in the primary market. They are:

• Offer through Prospectus involves inviting subscription from the public through issue of prospectus.
  
• Offer for Sale: Under this method securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers.
  
• Private Placement: Private placement is the allotment of securities by a company to institutional investors and some selected individuals.