Share Placements May,subject to Compliance with Certain Regulations,be Made to Institutional

question 28

Multiple Choice

Share placements may,subject to compliance with certain regulations,be made to institutional investors.Which of the following conditions is NOT a requirement of the Australian authority ASIC for share placements?

• A) The placement should consist of minimum subscriptions of $500 000, or be made up of not more than 20 participants.
• B) The discount from current market price should not be excessive.
• C) Under no circumstances should placements be in excess of 10% of the issued shares permitted.
• D) There is no need to register a prospectus, but a memorandum of information detailing the company's activities should be sent to all participants.

---

Definitions:

Variable Maintenance Costs

Expenses for upkeep that fluctuate with the level of operational activity or usage of equipment.

Fabrication

The process of constructing or manufacturing an item from raw or semi-finished materials.

Assembly Departments

Sections within a manufacturing facility where components are assembled into final products.

Residual Income

The income that an individual or business has after all expenses and costs, including capital costs, have been subtracted.