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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?
Hi Javsotnav
Could you kindly direct me to the page number in the Kaplan book please as this sounds a little conflicted.
Kind regards,
Vijay
Hi Vijay,
It is in Page 183 (chapter 8), there is a comparation board between public and private companies.
Thanks
Regards
Hi 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
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