What are Share Purchase Plans?

Submitted by Sharemarket News on 15 April, 2011 - 19:29

Learn about share purchase plans.

Share purchase plans (SPP) allow companies to issue a maximum of $5,000 in new shares to each shareholder without having to issue a prospectus. SPPs were originally used to give opportunities enjoyed by big institutions to small shareholders. Shareholders also get to buy with no brokerage and at a discount to the current share price.