What you need to know about share purchase plans
Most investors in the Australian share market have had an opportunity to participate in a Share Purchase Plan (SPP). Companies offer Share Purchase Plans to raise capital. Often it can be to fund a new acquisition. A Share Purchase Plan is an offer to existing shareholders to purchase further shares. This is usually at a discounted price to what the stock is trading on the market. Why do companies offer share purchase plans? These Share Purchase Plans are usually a …