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JAMB Commerce 1998 Question 29

Question 29

Stock Exchange

I. Companies must be registered as private limited liability companies.
II. Companies must have not less than 100 shareholders
III. No shareholder may have more than 75% of issued share capital.
What of the above are requirements for admission into the second-tier securities market?

  1. A.I and II only
  2. B.I and III only
  3. C.I, II and III
  4. D.II and III only.
Show the answer and explanation

Answer: D (II and III only.)

Explanation

The Second-Tier Securities Market required at least 100 shareholders and no single holder with more than 75% of the shares; companies had to be public, not private.