Question

By law, public offerings of debt and equity to the public must be accompanied by a...

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

Homework Answers

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.
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