A public issue of shares where the investor must state in advance the amount they are willing to pay for the shares is called a:

Question

Quizplus · Accepted Answer

A tender issue is a way of issuing shares to the public where investors state in advance the amount they are willing to pay for the shares. The company then sets the price according to the bids received and issues the shares at the determined price. Therefore, option A is the correct answer. Private issue refers to the sale of securities to a limited number of investors, share purchase plan is a way of offering shares to existing shareholders, and venture share issue refers to the issuance of shares by a start-up or a high-risk company to raise capital.

A Public Issue of Shares Where the Investor Must State