n NISM Certifications
X NISM Series X
Medium

Which of the following is NOT a primary market method for raising capital?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Offer for Sale (OFS)

    Correct answer

  2. B

    Private Placement

  3. C

    Qualified Institutional Placement (QIP)

  4. D

    Rights Issue

Why this is the answer

In an Offer for Sale, existing shareholders sell their shares to the public, and the company does not receive any fresh capital, making it a secondary market transaction.

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