n NISM Certifications
X NISM Series X
Medium

When does a company’s share capital NOT increase?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Private placement

  2. B

    Fresh issue of shares

  3. C

    Preferential allotment

  4. Offer for sale

    Correct answer

Why this is the answer

Offer for sale involves existing shareholders selling shares, with no new shares issued or share capital increased.

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