an offering made to existing shareholders to purchase more shares without brokerage fees (broker’s transaction fee)
Shares discounted to encourage shareholders
Doesn’t require a prospectus
Limits the number of shareholders in the business → assist with decision making
Permission is required from the ASIC, is relatively inexpensive is quick and benefits both company and the investor
Share purchase plans allow existing companies to issue a max of $15 000 in new shares to each existing shareholder without issuing a prospectus
