Pradeep and Paras were not being able to agree on the method they would like to choose for issuing their shares. Pradeep said that they should issue their shares to the existing employees as this will lead to higher efficiency. On the other hand, Paras wanted to issue shares to the smaller number of sophisticated investors as this will not let the management slip from their hands. The method suggested by Paras is :
Raghav is a very creative person and has always been working on innovating products and services that can make living healthy and hygienic. He developed a design of an air conditioner with an inbuilt air purifier as well. Since he did not get any financial support from any bank, he approached Nirvana Vent (VC), a venture capitalist firm. Though VC liked the idea but it refused to help Raghav at the seeding stage and asked him to come again if needed during second round financing.
Why was seed capital not given by VC when it was ready to fund the second round financing?
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Nishtha, a professionally qualified entrepreneur decided to start ‘kids furniture’ a website of designer furniture. It was relatively an untried area involving high risk. She lacked the necessary funds and experience to give shape to her idea. She knew that if she failed to get investment from the public her idea would die down before it is tried. So, she made a detailed business plan and presented her idea to ‘FiFa Finance Ltd.’ a company run by a group of professional investors. They were impressed by her business plan and decided to fund her start-up in exchange for an equity stake in the business. The source of finance used by Nishtha is:
The organisation, management, membership and functioning of stock exchanges in India are governed by the provisions of:
Which of the following terms related to stock and stock market trading means buying price?
ABC Ltd., decided to raise funds by issuing shares. the finance department felt that the company should offer the shares to existing shareholders on a pro-rata basis. Out of the following, identify the method of raising the funds being suggested by the finance department:
The Securities and Exchange Board of India was established on:
19 videos|60 docs|12 tests
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19 videos|60 docs|12 tests
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