Business Studies

Financial Markets

Easy

Rohit has 500 shares of Ruchi Soya Ltd. Ruchi Soya further issued 1,00,000 equity shares and offered Rohit to buy 1 more equity share for every 5 shares held by him. Identify the method of floatation

Right issue

Private placement

Offer through prospectus

offer for sale

✅ Correct Option: 1

A rights issue is when a company offers new shares to its existing shareholders in proportion to their existing holdings. Rohit being offered 1 additional share for every 5 shares he already holds is a classic example of a rights issue, which protects existing shareholders from dilution.

2026: 6 June Shift 1

Identify, which of the following is not a function of Stock Exchange?

2026: 29 May Shift 2

Which of the following is not the function of financial markets:

2022: 16 July Shift 2

Which of the following statement is/are correct regarding function of Stock Exchange?

A. Providing liquidity and market ability to existing securities.

B. Training of intermediaries.

C. Undertaking steps of investor protection.

D. Promotion of fair practices and code of conduct in securities market.

E. Regulation of takeover bids by companies.

Choose the correct answer from the options given below:

2026: 13 May Shift 1

A certain degree of __________ speculation is necessary to ensure liquidity and price continuity in the stock market.

2026: 13 May Shift 2

The following is the Protective Function of SEBI:

2023: 11 June Shift 3

Identify, which of the following is not an objective of SEBI.

Rohit has 500 shares of Ruchi Soya Ltd. Ruchi Soya further issued 1,00,000 equity shares and offered Rohit to buy 1 more equity share for every 5 shares held by him. Identify the method of floatation

Solution

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