RAISING OF CAPITAL
how organizations raises capital from the public
The methods by which a company rises capital or issue its shares are:
By prospectus: A prospectus, giving particulars of the company and its business, is published with application form.
Shares are allotted to those who apply
By offer for sale: The whole issue of shares is allotted to an issuing house (merchant bank, finance house) which offers them to the public by means of a document known as “offer for sale”.