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Source of Finance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Source of Finance

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 24, 2019 at 3:18 pm #514007
    Avatararunotes
    Member
    • Topics: 65
    • Replies: 39
    • ☆☆

    I would like to ask about the private placement

    As to what I know private placement refers to offer to a small number of accredited investors only.
    Private placement will not impede control of the compnay and is cheaper as compared to IPO. (based on what I search on the internet)

    1. May I know why private placement will not cause the company loss of control??

    2. What will be the negative impact of using private placement to raise funds?

    3. Is there any restriction imposed talking about the accredited investors cannot buy the % of shareholding up to a certain %?

    4. Does it fall under equity finanicng?

    Just to hope getting an understanding. Tq u very much

    April 25, 2019 at 2:18 pm #514103
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    I am sorry, but this is all much too specific to be relevant to Paper FM.

    All you really need to be aware of is what a private placement is (and you have stated this in your question).

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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Source of Finance’ is closed to new replies.

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