When a Newly Established Company Issues Shares for the First

question 3

Multiple Choice

When a newly established company issues shares for the first time the directors will issue the shares:

• A)at the price of $1 per share
• B)at the market price
• C)at a price established in consultation with ASIC
• D)at the highest price that they expect that the shareholders will be prepared to pay

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Definitions:

Indirect Quote

An exchange rate expressed as the amount of foreign currency one unit of domestic currency can buy.

Direct Quote

An exchange rate presented as the local currency for each unit of the international currency.

Japanese Yen

The official currency of Japan, widely recognized by its symbol ¥ and used extensively in international trade.

Forward Exchange Rate

The forward exchange rate is a contractually fixed exchange rate for a financial transaction that will occur at an agreed upon future date.