Question

Which of the following is a means of selling stocks to the public?

Select one:

a. private placement

b. organized selling

c. public offering

d. direct placement

Answer 1

Answer- C

Explanation

Private Placement:  It is also known as a non-public offering, In this method, the stock is allotted to a selected small number of investors. Since it is a non-public offering, it is issued through offering memorandum and these are prospectus exempt.

Organized selling: It is the selling of one business to another business.

Direct Placement: Direct placement refers to the bringing together of a potential employee and a prospective employer for the purpose of a permanent employment relationship.

Public Offering: Public offering means offering companies equity share or other financial instruments to the general public to raise the capital.

THANK YOU.