What is a share purchase plan
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The definition of a Share Purchase Plan is an offer to existing shareholders to purchase further shares. This is usually at a discounted price. ... Those who do usually sell those rights on market to realise the value that is inherent in the offer (usually because the offer is less than the current share price).
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Investors in the Australian share market at some point or another have been offered a Share Purchase Plan. Companies offer Share Purchase Plans to raise capital to fund a new acquisition. The definition of a Share Purchase Plan is an offer to existing shareholders to purchase further shares. This is usually at a discounted price. Shareholders can purchase up to A$15,000 in new shares. These Share Purchase Plans are usually a way for companies to raise capital for a new project without having to take up debt. There are two types of Share Purchase Plans – a renounceable and non-renounceable.
Investors in the Australian share market at some point or another have been offered a Share Purchase Plan. Companies offer Share Purchase Plans to raise capital to fund a new acquisition. The definition of a Share Purchase Plan is an offer to existing shareholders to purchase further shares. This is usually at a discounted price. Shareholders can purchase up to A$15,000 in new shares. These Share Purchase Plans are usually a way for companies to raise capital for a new project without having to take up debt. There are two types of Share Purchase Plans – a renounceable and non-renounceable.Non-renounceable means eligible shareholders cannot transfer their rights to new shares under the offer. This means they cannot go and sell their entitled shares to a third party ie selling it on the stock market. A renounceable offer is one where the investor is able to transfer their rights. Those who do usually sell those rights on market to realise the value that is inherent in the offer (usually because the offer is less than the current share price).
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