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5.A company can raise capital through the primary market in the form of

               (a) Equity shares
               (b) Preference shares

               (c) Debentures
               (d) All of the above



               Home Assignment


               1 mark questions

               Q.1.  PK  Enterprises  Limited  has  sold  an  entire  lot  of  5,  00,000  equity  shares  @  ₹9  each  to

               Prosperous Bank Private Limited. The bank in turn will offer the shares to general public for
               subscription  @  ₹11  per  share.  Identify  the  method  of  floatation  being  described  in  the  given

               lines.




               Q.2 Jaykant is holding hundred shares of a company. He has been given a privilege offer to
               subscribe to a new issue of shares of the same company in proportion of 2:1 to the number of

               shares already possessed by him. Identify the method of floatation being described in the above
               case.


               3. What are the two important components of capital market?



               4. What do you mean by an ideal capital market?


               3-4 mark questions

               Q.1 Give a short note on primary market.

               Q.2 Give a short note on Capital market.

               5-6 mark questions
               Q.1 The directors of a company want to modernize its plant and machinery by marking a public

               issue of shares.  They wish to approach the stock exchange, while the finance manager prefers

               to  approach,  a  consultant  for  the  new  public  issue  of  shares.  Advise  the  directors  whether

               approach  the  stock  exchange  or  a  consultant  for  new  public  issue  of  shares  and  why?  Also
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