Capital Raising Quiz
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Questions and Answers

What is the advantage of floating a company?

  • Raising capital from a select group of persons
  • Not needing to advertise
  • Being exempt from legal provisions
  • Raising capital from the public at large (correct)

    • What is contained in Chapter III of the Act?

  • Provisions relating to tax deductions
  • Provisions relating to employee benefits
  • Provisions relating to raising of capital (correct)
  • Provisions relating to company management

    • What is the difference between 'Public Offer' and 'Private Placement' of securities?

  • Public Offer is for raising capital from a defined group of persons, while Private Placement is for raising capital from the public at large.
  • Public Offer and Private Placement are both illegal ways of raising capital.
  • Public Offer is for raising capital from the public at large, while Private Placement is for raising capital from a defined group of persons. (correct)
  • Public Offer and Private Placement are the same thing.

    • What is Chapter III of the Act about?

    <p>Raising of capital through both 'Public Offer' and 'Private Placement'.</p> Signup and view all the answers

    What is the purpose of advertising when raising capital through a 'Public Offer'?

    <p>To inform investors about the company and its securities.</p> Signup and view all the answers

    What is the difference between a 'Public Offer' and a 'Private Placement of securities'?

    <p>The medium used to undertake the sale</p> Signup and view all the answers

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