Question

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

पर्याय

• Buy back of shares

• Employee stock option plan

• Private placement of shares

• Sweat Equity

Answer 1

An offer of securities or invitation to subscribe securities to a select group of persons is termed as Private placement of shares.

Explanation:

When a company offers securities to a select group of persons (not the general public) through an invitation, it is called a Private Placement under Section 42 of the Companies Act, 2013.