maturity and actualization of their potential capacities. Explain 'Private Placement' and 'Rights Issue' as methods of floatation of new issues in the primary market.

Private Placement  Private placement is the allotment of securities by a company to institutional investors and some selected individuals.  This method of raising capital is quicker and inexpensive as compared to public issue. Rights Issue:  In this method, the existing shareholders are offered the ‘right’ to buy new shares in proportion to the number of shares they already possess.  It is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company.