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Direction: Read the following text and answer the questions given below:
Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.
Q. Which method of floatation was used by Rajni Auto Manufacturers?
  • a)
    Right issue
  • b)
    Private placement
  • c)
    Offer for sale
  • d)
    E-IPOs
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Direction: Read the following text and answer the questions given bel...
Rights Issue is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. The shareholders are offered the ‘right’ to buy new shares in proportion to the number of shares they already possess.
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Direction: Read the following text and answer the questions given bel...
Method of Floatation Used by Rajni Auto Manufacturers

Rajni Auto Manufacturers used the method of Right issue to offer shares to their existing shareholders.

Explanation:

1. Right Issue:
- Right issue is a method of raising capital where existing shareholders are given the right to purchase new shares in proportion to their current shareholding.
- This method allows the company to reward its loyal shareholders by offering them the opportunity to maintain their ownership percentage in the company.

2. Benefits of Right Issue:
- It helps in maintaining the ownership structure of the company.
- It provides existing shareholders with the first opportunity to purchase additional shares.
- It can be a cost-effective way for the company to raise capital as it does not involve underwriting fees.

3. Company's Approach:
- Rajni Auto Manufacturers values its loyal stakeholders and aims to keep them associated with the organization for longer durations.
- By offering a right issue, the company demonstrates its commitment to rewarding existing shareholders and maintaining their trust.

In conclusion, the use of the right issue method by Rajni Auto Manufacturers reflects the company's focus on retaining the loyalty of its shareholders and strengthening its relationship with them.
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Direction: Read the following text and answer the questions given below:Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.Q. Which method of floatation was used by Rajni Auto Manufacturers?a)Right issueb)Private placementc)Offer for saled)E-IPOsCorrect answer is option 'A'. Can you explain this answer?
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Direction: Read the following text and answer the questions given below:Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.Q. Which method of floatation was used by Rajni Auto Manufacturers?a)Right issueb)Private placementc)Offer for saled)E-IPOsCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions given below:Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.Q. Which method of floatation was used by Rajni Auto Manufacturers?a)Right issueb)Private placementc)Offer for saled)E-IPOsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions given below:Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.Q. Which method of floatation was used by Rajni Auto Manufacturers?a)Right issueb)Private placementc)Offer for saled)E-IPOsCorrect answer is option 'A'. Can you explain this answer?.
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Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.Q. Which method of floatation was used by Rajni Auto Manufacturers?a)Right issueb)Private placementc)Offer for saled)E-IPOsCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions given below:Rajni Auto Manufacturers has been into business for the last 30 years and have decided to give a special privilege to their existing shareholders to subscribe to the new issue of shares where they will be given shares according to the proportion of shares held by them. The company always gives special treatment to its loyal stakeholders and also ensures that they remain associated with the organization for longer durations. Last year, the company was successfully dealing through the capital market where both the buying and selling of securities were taking place. The owner of the company is a man of ethical business. He often contributes to business magazines by writing articles and editorials. He recently wrote an article about the watchdog of stock market. The article gained a lot of popularity and now is part of the curriculum of MBA students.Q. Which method of floatation was used by Rajni Auto Manufacturers?a)Right issueb)Private placementc)Offer for saled)E-IPOsCorrect answer is option 'A'. 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