Accounting Multiple Choice Question – 10 February 2025

Alex plc wants to be listed on the London Stock Exchange.

Ken, their adviser has stated that the following are methods by which a company can obtain a new London Stock Exchange quotation for its shares:

Method 1 Offer for sale
Method 2 Placing
Method 3 Rights issue
Method 4 Offer for subscription

Which of these methods are actually available to Alex plc?

Select ONE answer:

1. Methods 1, 2 and 3 only
2. Methods 2, 3 and 4 only
3. Methods 1, 2 and 4 only
4. Methods 1, 3 and 4 only

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > A rights issue is the only one of these methods which cannot be used to obtain a new stock exchange listing.
4. Not correct

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