An Example of an Issue of a Financial Security in the Primary

question 27

Multiple Choice

An example of an issue of a financial security in the primary market would be:

• A) the acquisition of shares in a company from an existing investor purchased on the ASX.
• B) shares arising as a result of a dividend reinvestment plan.
• C) shares arising from participating in a rights issue.
• D) both b and c

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Definitions:

Strata Regulations

Laws or rules governing strata properties, which are typically multi-unit housing complexes with individual ownership of units and shared ownership of common areas.

Federal Statute

Laws enacted by the national government that apply throughout the country.

Land Titles System

A registration system that guarantees title to real property.

State of Title Certificate

A document issued by a governmental land registration office showing the current status of legal ownership, and any encumbrances, liens, or mortgages on a piece of property.