Identify the method of flotation in the Primary Market in which a company sells securities en bloc at an agreed price to…

Explanation

Correct Answer: (B) Offer for Sale

Why “Offer for Sale” is correct?

In Offer for Sale, the company:

• Sells securities en bloc (in bulk)

• At an agreed price

• To a broker or issuing house

Then the broker sells those securities to the public.

So the key words in the question are:

👉 “en bloc”
👉 “agreed price to a broker”

These clearly indicate Offer for Sale.

Why the other options are not correct? 1. Rights Issue

Shares are offered to existing shareholders, not to a broker.

2. e-IPOs

This is just an electronic method of applying for shares online.
It is not a separate method of flotation.

3. Offer through Prospectus

In this method, the company directly invites the public to subscribe to shares.
Shares are not first sold to a broker.