Question

By law, public offerings of debt and equity to the public must be accompanied by a ________, which must be lodged with ASIC

Select one:

a. Balance sheet

b. Statement of capital structure

c. Statement of cash flows

d. Prospectus

Answer 1

By law, public offerings of debt and equity to the public must be accompanied by a prospectus, which must be lodged with ASIC.

As a general rule, if you are a public company offering securities for sale (for example, shares or debentures) then you must provide a disclosure document to potential investors.

A disclosure document is the broad term used to describe all regulated fundraising documents for the issue of securities.

There are four types of disclosure document:

• a prospectus
• an offer information statement
• a profile statement, and
• a two-part simple corporate bonds prospectus.