Q. Consider the following statements:

1. Anchor and retail investors in an IPO are the initial investors who invest before the IPO is made public.
2. Angel investors and venture capitalists invest in exchange for an equity stake.

Which of the above statements is/are correct?
Answer: Only 2
Notes: Anchor investors are institutional investors invited before IPOs open, but retail investors participate after the issue opens, not before. Angel investors and venture capitalists both provide capital to businesses in exchange for equity. Therefore, only statement 2 is correct, while statement 1 incorrectly categorizes retail investors as initial investors before IPO launch.