Question : Rhea and Divya are partners as per provisions of the Indian Partnership Act 1932. On admission of a below price than the market price," is an example of_______________.
Option 1: Public Issue
Option 2: Private Placement
Option 3: ESOP
Option 4: Issue other than cash
Answer (1)
24th Jan, 2024
Correct Answer: Private Placement
Solution : Answer = Private Placement
The scenario described is an example of "Private Placement." Private placement involves the sale of securities directly to a select group of investors rather than through a public offering. In this case, Rhea and Divya admit a new partner by selling them partnership interest at a price below the market value.
Hence, the correct option is 2.
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