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acharya
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(a) Public issue: When an issue/offer of securities is made to new investors for becoming part of
shareholders’ family of the issuer it is called a public issue. Public issue can be further classified into
Initial public offer (IPO) and Further public offer (FPO). The significant features of each type of public
issue are illustrated below:
(i) Initial public offer (IPO): When an unlisted company makes either a fresh issue of securities or
offers its existing securities for sale or both for the first time to the public, it is called an IPO. This
paves way for listing and trading of the issuer’s securities in the Stock Exchanges.
(ii) Further public offer (FPO) : When an already listed company makes either a fresh issue of securities
to the public or an offer for sale to the public, it is called a FPO.
(b) Right issue (RI): When an issue of securities is made by an issuer to its shareholders existing as on a
particular date fixed by the issuer (i.e. record date), it is called a Rights Issue. The rights are offered in
a particular ratio to the number of securities held as on the record date.
(c) Bonus issue: When an issuer makes an issue of securities to its existing shareholders as on a record date
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narahari
answered
Public issue: When an issue/offer of securities is made to new investors for becoming part of
shareholders’ family of the issuer it is called a public issue. Public issue can be further classified into
Initial public offer (IPO) and Further public offer (FPO). The significant features of each type of public
issue are illustrated below:
(i) Initial public offer (IPO): When an unlisted company makes either a fresh issue of securities or
offers its existing securities for sale or both for the first time to the public, it is called an IPO. This
paves way for listing and trading of the issuer’s securities in the Stock Exchanges.
(ii) Further public offer (FPO) : When an already listed company makes either a fresh issue of securities
to the public or an offer for sale to the public, it is called a FPO.
