Offering shares for sale to its employers means firstly new securities are offered to an intermediary at a fixed price then it is further resold to general public at a higher price.
Following values are promoted by a company:
Self existent.
Intermediaries can earn high amount of profits in future.
Readiness to cooperate.
Free from the tedious work of making public issue.
Encouraging them for saving.
Building a trust.
It helps easily and directly in capital formation of the company.
It is an easy method raising funds.
Helpfulness.
Faithfulness for utilization of their money.
