Need for Finance in Business
Resource mobilization is the bridge between strategy and execution.
Concept of Capital Market
Concept of Primary Market
Methods of Raising Funds in Primary Market
- Offer through Prospectus: The company invites the public to purchase its securities directly by issuing a prospectus.
- Offer for Sale: The company issues securities to intermediaries at an agreed price who then further resell the securities to the public.
- Private Placement: The company does not issue securities to public but to selected individuals and institutions only.
- Rights Issue: The company issues securities to the existing shareholders in the proportion in which shares are already held by them.
- E-IPOs: In this method, the company issues securities using online systems.
Angel Investor
Venture Capital