How are shares typically distributed for a Private Limited Company (Ltd)?

In a Private Limited Company (Ltd), shares are typically sold by the company to selected individuals. This process involves offering shares to private investors, friends, family, or selected professional investors, rather than the general public. The company aims to raise capital while maintaining control over who can acquire ownership stakes in the business.

The approach of selectively selling shares helps the company manage its ownership structure and maintain confidentiality, as private companies are not required to disclose financial information publicly like those listed on stock exchanges. This method also allows existing shareholders to have a say in who becomes a part of the company, thereby maintaining the company's ethos and safeguarding its interests.

The other options do not accurately reflect the distribution mechanisms for Private Limited Companies. For instance, shares are not sold on the stock market, as that is characteristic of Public Limited Companies (Plc). Additionally, giving shares away for free is not a standard or sustainable practice in business operations. Lastly, while shares may be traded among existing shareholders, this does not encompass the primary method of how shares are initially distributed by the company itself.