+3 votes
in Class 12 by kratos

How can an entrepreneur, raises funds by selling the issue mainly to the institutional investors?

1 Answer

+3 votes
by kratos
 
Best answer

Private Placement: Any entrepreneur can directly sale of its securities of a company to a limited number of sophisticated investors. Entrepreneurs can raise funds by selling the securities mainly to the institutional investors like:

Entrepreneurs both from public limited and private limited sectors, banks heavily upon raising funds through the issues of varied financial instruments under this segment as at times they do not wish to disclose information to the open market.

...