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Commerce · Q243

Business Finance

Graduate and Post Graduate · Commerce · question 243

Q243

Which of the following are the main features of a 'bought out deal' in the context of corporate funding? (i) It is a method of offering securities to the public through a sponsor or underwriter. (ii) A bank, financial institution, or an individual can never not be a sponsor. (iii) The securines are listed in one or more stock exchanges within a time-frame mutually agreed upon by the company and the sponsor. (iv) The bought out deals facilitate better investor protection. (v) As the sponsor may occupy a large number of shares, it may trouble the company.

A.
(i), (ii), (iii), (iv) and (v)
B.
(i), (iii), (iv) and (v)
Answer
C.
(ii), (iii), (iv) and (v)
D.
(i), (ii), (iii) and (v)

Answer: Option B

Solution

Answer: Option B
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