Question

iii. What is meant by Issue price?

(a) The price at which a company’s shares are traded in the primary market.

(b) The price at which a company’s shares are bought in the primary market.

(c) The price at which a company’s shares are sold in the primary market.

(d) The price at which a company’s shares are offered initially in the primary market.

iv. Odd lot share certificates can also be ………………………………………...

v. Other name of Private placement issue is ………………………….

vi. One example of corporate action is ………………………………….​

Answer 1

Answer:

Option D is the write answer

(d) The price at which a company’s shares are offered initially in the primary market.

Explanation:

The issue price is the price at which shares are offered for sale when they first become available to the public. Shares in the company slipped below their issue price on their first day of trading. Investors earn the difference between the discount issue price and the full face value paid at maturity

v:

SEDA (Standby Equity Distribution Agreement) is also a form of private placement.

vi:

Dividends, stock splits, mergers, acquisitions and spinoffs are all common examples of corporate actions. Corporate actions

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