Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Raising capital
- This topic has 5 replies, 2 voices, and was last updated 3 years ago by Vijay.
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- October 10, 2020 at 11:20 am #588517
Hello, first, thank you very much for this help. I am studying with Kaplan book LW GLO. It said that private company can not offer securities to the public then, how private company can issue pre exemptions rights if this can be offered to the public?
October 10, 2020 at 9:47 pm #588545Hi Javsotnav
Could you kindly direct me to the page number in the Kaplan book please as this sounds a little conflicted.
Kind regards,
Vijay
October 11, 2020 at 12:49 pm #588611Hi Vijay,
It is in Page 183 (chapter 8), there is a comparation board between public and private companies.
Thanks
Regards
October 11, 2020 at 10:18 pm #588655Hi Javsotnav,
Let me clarify.
Public Companies are able to offer shares to the general public. Private companies can not offer shares to the general public but can offer shares to family or friends.
Pre emption rights are simply the right to be offered new shares before anyone else and so it is possible for a shareholder in a private company to have pre emption rights.
I hope this clarifies.
Kind regards,
Vijay
October 11, 2020 at 11:21 pm #588658Thanks Vijay, It is clear now
Thank you very much
Kind regards
October 14, 2020 at 9:00 pm #588914My pleasure 🙂
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