Question : Which of the following statement is correct?
Statement 1: Under offer for sale the company issues a prospectus and invite the general public to purchase shares or debentures.
Statement 2: Under private placement the company sells security to the institutional investors or brokers instead of selling them to general public.
 

Option 1: Both are true 

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.


 


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: Statement 1 is false and statement 2 is true.



Solution : Under public issue the company issues a prospectus and invite the general public to purchase shares or debentures. Under offer for sale firstly the new securities are referred to an intermediary. They further the resale the same to the general public. Under private placement the company cell security student investors or brokers instead of selling them to the general public.

Hence, option D is correct.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books