Question

An offer of securities or invitation to subscribe securities to a select group of persons is termed as:

• A. Buy back of shares
• B. Employee stock option plan
• C. Private placement of shares
• D. Sweat Equity

Hint:

Private placement allows companies to access funds from select investors without going through public offerings.

Answer 1

The Correct Option is C

A private placement involves offering securities to a select investor group, unlike public sales. This method is typically used for rapid capital acquisition and is governed by the Companies Act. It contrasts with public offerings, which are accessible to any investor.