Exams › IBPS PO › General Awareness

Which of the following methods involves securities that are not issued directly to the public but through stockbrokers, who in turn resell them to the investing public in the primary market?

1. Offer through Prospectus
2. Offer for sale
3. Private placement
4. Rights Issue

Correct answer: Offer for sale

Solution

In an offer for sale, securities are first offered to intermediaries such as stockbrokers, who then sell them to the public. This differs from a prospectus issue, where the company directly invites the public. Therefore, the correct answer is Offer for sale.

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