Primary Equity Market

______ is a part of capital market

• Equity Market

• Money Market

• Commodities Market

• None of the above

Mr. Vinayak sold shares of TCS at 4000 on Tuesday. Following is the example for ____

• Primary market transaction

• Secondary Market Transaction

• Commodities Market Transaction

• Debt Market Transaction

In book building process, bids are invited from the ______

• Merchant bankers

• Stock Exchanges

• Investors

• Brokers

What happens if an investor's ASBA application is not allotted any shares?

• The blocked amount is immediately debited from the investor's bank account

• The blocked amount remains untouched and is released after the IPO allotment process is completed.

• The investor is required to pay an additional fee for unsuccessful ASBA applications.

• The investor's bank account is frozen until the IPO allotment process is completed.

Which of the following is a benefit of the ASBA process?

• Instant allotment of shares without any waiting period

• Higher chances of receiving more shares than applied for

• Guaranteed profit on the IPO investment

• Ability to withdraw the blocked amount at any time during the IPO subscription period

_____ is the minimum price of the price band

• Subscription Price

• Cap Price

• Cut off Price

• None of the above

How does the Book Building process work?

• Investors submit sealed bids, and the lowest bid wins.

• Investors submit bids within a price range, and the final price is determined based on demand.

• Investors directly negotiate the IPO price with the issuing company.

• Investors purchase IPO shares at a fixed price determined by the regulator.

Why do companies typically undertake a rights issue?

• To attract new institutional investors.

• To repay existing debt.

• To reward existing shareholders with free shares.

• To raise additional capital from current shareholders.

What is a Follow-on Public Offering (FPO)?

• The issuance of shares by a company to its employees.

• The offering of shares by a private company to its existing shareholders.

• The issuance of bonds by a government agency.

• The offering of shares by a company that is already publicly traded.

Who are the typical investors in a private placement?

• Retail investors.

• Government agencies.

• Institutional investors and high-net-worth individuals.

• Foreign banks only.