Vinh has inherited a substantial sum of money from his father and is considering various investments. A business colleague has suggested that company shares and bonds offer attractive long-term growth opportunities as well as a regular income.Vinh has been offered shares in ABC Company. However, although the price is attractive, the shares are ‘partly paid’ and the company operates in the volatile technology sector. Vinh is also considering shares in the rapidly growing JKL Company but is concerned that the nominal value of the shares is one-quarter of the current market price. Vinh’s business colleague suggests that this is nothing to worry about as the difference in price can be recovered from the company. Lastly, Vinh is considering bonds issued by XYZ Company, which offer a fixed rate of interest. However, Vinh is concerned that the return on the bonds does not appear to be as attractive as the shares that are available.Required:Explain the legal characteristics of the three alternative investments that should be considered by Vinh as a prospective investor. (10 marks)
