The Directors of a Company want to modernise its plants and machinery by making a public...

 

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The Directors of a Company want to modernise its plants and machinery by making a public issue of shares. They wish to approach stock exchange. While the finance manager prefers to approach a consultant for the new public issue of shares. Advise the directors whether to approach stock exchange or consultant for the new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares. Distinguish between 'Capital Market' and 'Money Market' on the following bases: (1) Duration of securities traded (ii) Participates (iii) Instruments traded (iv) Safety (v) Expected return. The Directors of a Company want to modernise its plants and machinery by making a public issue of shares. They wish to approach stock exchange. While the finance manager prefers to approach a consultant for the new public issue of shares. Advise the directors whether to approach stock exchange or consultant for the new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares. Distinguish between 'Capital Market' and 'Money Market' on the following bases: (1) Duration of securities traded (ii) Participates (iii) Instruments traded (iv) Safety (v) Expected return.

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I advise the directors to approach a consultant as a new issue of shares is not possible in the ... View the full answer