answersLogoWhite

0

When principal shareholders lend some of their shares to raise funds and afterwards buy those same shares back for the same price it is called top-up placement. This is done quite often in private investments.

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

What is private placement of shares?

The private placement of shares involves selling shares to a few specific investors to boost capital. Some of these investors are mutual funds, big banks, pension funds, and some insurance companies.


Topup your mobile for free?

top me up


What are benefits of private placement to companies and the investors?

to attain some benefit from this private company the shares are being sold to


Where is the glow plug relay on vauxhall movano?

behind the radiator topup resi


How do you become preference shareholder?

To become a preference shareholder, you typically need to invest in a company's shares specifically designated as preference shares during an initial public offering (IPO) or through a private placement. Preference shares can also be acquired on the stock exchange if the company is publicly traded. These shares often provide fixed dividends and have priority over ordinary shares in the event of liquidation. It's important to research the company's financial health and the specific terms associated with the preference shares before investing.


How long does it take bbm to activate after topup?

Sometimes it takes about 12 hours, But most of the time it's done before that. :)


What is meant by the term QIP?

The term QIP means "qualified institutional placement". This is a tool for capital raising, where a listed company or stock market can issue equity shares and others.


Why is hydrogen's placement on the periodic table somewhat strange?

Hydrogen's placement on the periodic table is unique because it shares properties with both alkali metals and halogens, despite being a nonmetal. It has characteristics of a metal when it forms positive ions and a nonmetal when it forms negative ions. Additionally, it can exist as a gas, liquid, or solid at room temperature, further contributing to its unusual placement.


What is deposit for shares?

A deposit for shares refers to an initial payment made by an investor to secure a certain number of shares in a company before the actual purchase is completed. This deposit acts as a commitment to buy the shares, often during an initial public offering (IPO) or a private placement. It is typically a partial payment, with the remaining balance due at a later date. This mechanism helps companies gauge investor interest and secure funding ahead of the full transaction.


What is the difference between initial public offering and private placement?

An initial Public Offering is the sale of a company's shares on an organized exchange usually accompanied by books and records that have been audited and made available for public viewing. In the past, many smaller companies have opted to "Go Public" via a reverse merger, in which a private company is "Acquired" by a "Public Shell" (a company that has a listed symbol but no business, hence the term "Shell"). However, this technique has fallen out of favor with regulators and is often highly scrutinized to the point of the process no longer being a desirable route to public trading. A private placement is a private offering of a company's privately held stock, usually packaged in "Units" or "Blocks" of investments. A unit can consist of shares (Stock), Warrants (options), and a coupon (interest payments) or any combination. Commonly, any company with shares can sell their shares privately to any other interested party. You do not have to be a huge company to sell shares. (You own a small car wash business. You're incorporated with 1,000 shares. You can sell all, or any part of those shares.) A private placement differs from the aforementioned common traditional private sale of stock due mostly to the addition of "Selling Groups" (Such as Broker Dealers) whom when brought into the deal bring with them additional layers of requirements and regulations. These regulations include risk disclosures, disclosures of material facts and the investor "Type" that the private placement can be offered to (Usually only "Accredited Investors" as defined by regulation having minimum liquid net worth and investment experience requirements.) The most common private placement is a "Reg D" (Rule 504, Regulation D), which allows for the exemption from registration of certain "Private Offerings."


What is pre IPo?

A pre IPO is when a portion of an initial public offering (IPO) is placed with private investors right before the IPO is scheduled to hit the market. The private investors in a pre-IPO placement are large private equity or hedge funds.


What are placement sevices?

what is placement service