NextQ53

'It is an equity-based investment in a growth-oriented small to medium business to enable the investor to accomplish objectives in return for minority shareholding in the business.' This investment has to be carefully evaluated and analysed by an entrepreneur to find out the stage at which he/she requires this investment to assist in. (i) Identify the type of capital discussed in the above lines. (ii) Explain the three stages included in 'Early Stage Financing' if the capital identified in (i) above is required at this stage. 'An affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.' (i) Identify the source to raise finance available to an entrepreneur discussed in the above lines. (ii) State any four features of the source of raising finance discussed in (i) above.

Sources of Finance and Capital MarketsStudy Simplify SpecialPYQ1MCQ
Question 52

Which of the following methods of floatation of new issues is used by the company, when the company directly sells its securities to a limited number of sophisticated investors and at times does not want to disclose information to the open market ?

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