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Question
An offer of securities or invitation to subscribe securities to a select group of persons is termed as ______.
Options
Buy back of shares
Employee stock option plan
Private placement of shares
Sweat Equity
MCQ
Fill in the Blanks
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Solution
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.
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.214]
