If a shareholder in a public company purchases shares on the Australian Securities Exchange, the capital of the company will:

Question

Quizplus · Accepted Answer

When a shareholder purchases shares on the Australian Securities Exchange (or any secondary market), they are buying the shares from another investor, not directly from the company. Therefore, the capital of the company does not change as a result of this transaction. The company's capital only changes when new shares are issued directly by the company, not when shares are traded between investors on the stock exchange.

If a Shareholder in a Public Company Purchases Shares on the Australian