I. Companies must be registered as private limited liability companies. II. Companies must have not...
Which of the above are requirements for admission into the second-tier securities market?
- A) I and II only
- B) I and III only
- C) I, II and III
- D) II and III only
Correct Answer: D) II and III only
Explanation
This question is asking which of the given statements are requirements for admission into the second-tier securities market. Let's analyze each statement one by one.Statement I: Companies must be registered as private limited liability companies. This means that in order to be admitted into the second-tier securities market, a company must be registered as a private limited liability company. This statement is about the legal structure of the company.
Statement II: Companies must have not less than 100 shareholders. This means that a company must have at least 100 shareholders to be eligible for admission into the second-tier securities market. This statement is about the number of shareholders a company must have.
Statement III: No shareholder may have more than 75% of issued share capital. This means that no single shareholder can own more than 75% of the total shares of the company. This statement is about the ownership distribution of the company.
From the given options, Option D: II and III only, is the correct answer. This means that the requirements for admission into the second-tier securities market are that a company must have not less than 100 shareholders and no shareholder may have more than 75% of the issued share capital.
It's important to note that Statement I is not a requirement for admission into the second-tier securities market, as it is not mentioned in the correct option.