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Business Studies · 2022 · 3 marks
CBSE 2022 · Region 2 · Set 1 · Q7
Explain ‘Private Placement’ and ‘e-IPOs’ as methods of
floatation of new issues in the primary market.
Marking-scheme solution
• Private Placement
It refers to the allotment of securities by a company to
• institutional investors and some selected individuals.
It helps to raise capital more quickly and economically
than a public issue.
• E-IPO
It refers to issuing securities through the online system of
stock exchange in which the company enters into an
• agreement with the stock exchange.
SEBI registered brokers, registrar to the issue are
appointed and the lead manager co-ordinates the
activities amongst the intermediaries connected with the
issue.
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CBSE Class 12 Business Studies past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.