The drawback of a ________ is that it may take time to organise and complete and may also require the release of a prospectus.

Question

Quizplus · Accepted Answer

The drawback described in the question is most commonly associated with a rights issue. A placement does not require the release of a prospectus and can be completed relatively quickly. A share purchase plan and dividend reinvestment plan are typically offered to existing shareholders rather than new investors.

The Drawback of a ________ Is That It May Take