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

Private placement of shares refers to offering securities to a specific group of investors rather than the public. This is typically done to raise capital quickly and is regulated by the Companies Act. It is different from public offerings, which are open to all investors.