Question 86
Business FinanceWhen a company raises additional capital by selling shares directly to the public through insurance companies or investment houses, this is known as
- A.rights issue
- B.bonus issue
- C.private placing
- D.debenture issue
- E.preference share issue
Show the answer and explanation
Answer: C (private placing)
Explanation
Placing shares with institutions such as insurance companies and investment houses is a private placing.