Following are the events which generally happen in the life of a public limited company (a) Public…
In the formation and capital raising lifecycle of a public limited company, promoters first incur preliminary expenditures to prepare incorporation documents, followed by…
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Following are the events which generally happen in the life of a public limited company
(a) Public issue of shares (IPO)
(b) Firm Incorporation
(c) Preliminary expenditures
(d) Issue of equity shares to promoters of the company
Choose the correct sequence (chronological order) of the events from the options given below:
Answer and explanation
Correct answer D
In the formation and capital raising lifecycle of a public limited company, promoters first incur preliminary expenditures to prepare incorporation documents, followed by the legal incorporation of the company. Subsequently, initial equity shares are subscribed by and issued to the promoters (signatories to the Memorandum), after which the company approaches the public via an Initial Public Offering (IPO).
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UGC NET Commerce