ENTREPRENEURSHIP QUIZ

Which of the following is NOT a method of floatation in the primary market?

• (a) Initial Public Offer (IPO)

• (b) Right Issue

• (c) Stock Split

• (d) Private Placement

When a company raises funds by offering shares to the general public for the first time, it is known as __________

• (a) Rights Issue

• (b) Initial Public Offer (IPO)

• (c) Preferential Allotment

• (d) Private Placement

A company offers additional shares to its existing shareholders at a discounted price. This method is known as ________

• (a) Initial Public Offer (IPO)

• (b) Right Issue

• (c) Offer for Sale

• (d) Private Placement

Which method allows a company to raise funds by directly issuing securities to a select group of investors?

• (a) Offer for Sale

• (b) Right Issue

• (c) Private Placement

• (d) Public Issue

The purpose of floatation in the primary market is to

• (a) Increase the price of existing shares.

• (b) Raise funds for the company.

• (c) Reduce the ownership of the company’s founders.

• (d) Only allow large corporations to invest.