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Financial Market Management — CBSE Class 10 board question

Q1. [1]
_________ is a mechanism, where during the period of which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price.
  1. (A) Fixed Price
  2. (B) Listing Price
  3. (C) Book Building
  4. (D) Delisting Price
Previously asked in CBSE board exam
2025 92 Q2 (iii)
Generated by claude-sonnet-4-6 · 2026-06-15 07:06 · grounding rag
Model Answer

(C) Book Building

Book Building is a mechanism where, during the period the IPO is open, bids are collected from investors at various prices which are above or equal to the floor price.

Source: Chapter 3, Issue of Shares — 'What does price discovery through Book Building Process mean?'

Explanation

The question directly quotes the textbook definition of Book Building. Examiners expect you to identify the correct term from the definition given. Remember: Book Building ≠ Fixed Price (where price is set in advance). In Book Building, the final price (Cut-Off Price) is discovered after bid closing.

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Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.