Methods: Offer For Sales, Offer For Subscription, Right Issues, Private Placement - SS2 Accounting Past Questions and Answers - page 1

Which of the following is a method of raising funds from the capital market where existing shareholders sell their shares to the public?

Which of the following is a method of raising funds from the capital market where new shares are issued to the public for the first time?

Which of the following is a method of raising funds from the capital market where existing shareholders are given the right to subscribe to new shares?

Which of the following is a method of raising funds from the capital market where securities are sold to a select group of investors?

Which of the following is long-term security traded in the capital market?

What is a prospectus?

Why might a company choose to do a private placement instead of a public offering?