Question

"Manvi Global Parkashan Limited” is a company that publishes books. Company wants to expand its business. Along with publication, company wants to do printing job as well. Company requires 50 crore for this purpose. It has decided to mobilise this amount through capital market. Company undertook intensive study of the capital market. In the meanwhile, it observed that market was passing through boom period, and in this situation inventors give priority to invest in equity shares so as to earn large profits. Company, therefore, considered it proper to issue equity shares. To invite the general public, prospectus was prepared and other procedures regarding floatation of capital initiated.

Besides, company realised that, on the one hand, share floatation costs are likely to rise very much and on the other hand, its cash flow position is not favourable. He also apprehends that this situation with continue for about 6 months. Thus for the next six months some additional funds will have to be collected. In order to mobilise these funds, company deemed it proper to depend on money market instruments. (i) Identify the method of floatation of capital as mentioned in the above paragraph.

(ii) Besides above share issue method, mention two other methods. (ii) Use of what kind of instrument will be appropriate for the money market. Clarify.​

Answer 1

Answer:

थदगदधखधं़घ़धढवमलखललढणदध