Primary Market

When securities are allotted to institutional investors & some selected individuals is referred to as _________.

• Initial Public Offer

• Offer through prospectus

• Private Placement

• Offer for sale

_____________ is the minimum price at which bid cab be made.

• Issue Price

• Cap Price

• Cut-off price

• Floor price

For shares, ________ is the original cost of the stock shown on the certificate; for bonds it is the amount paid to the holder at maturity.

• Market value

• Real value

• Face value

• Cut off value

_________ is a formal document that is required by and filed with the  SEBI that provides details about an investment offering to the public.

• Prospectus

• Abridged Prospectus

• Draft Offer Document

• Annual Report

_____ _________ is a market value of a quoted company.

_____________ is basically a process used in IPOs for efficient price discovery.

______ is an invitation to existing shareholders to purchase additional new shares in the company on a pro-rata basis within a specified date at a discounted price than the current market price.

• Preferential Issue

• FPO

• Rights issue

• Bonus Issue

When a security is sold above its _________, it is said to be issued at premium.

• Market value

• Face value

• Offer value

• Real value

Who decides the price of an issue?

• Issuer, registrar & merchant banker

• Merchant banker

• Issuer in consultation with merchant banker

• Issuer in consultation with registrar

The spread between the floor and the cap (max /upper) of the price band shall not be more than______.

• 10%

• 15%

• 20%

• 25%