We Answer Your
Frequently Asked Questions
Getting Started
What is a Sophisticated Investor?
In Australia, a 708 Sophisticated Investor is a classification under Section 708 of the Corporations Act 2001 that allows individuals or entities to access certain wholesale investment opportunities – including pre-IPOs, placements, and private capital raises – without the need for a formal prospectus or disclosure document.
To qualify, you must obtain a certificate from a Qualified Accountant (commonly referred to as a 708 Certificate) confirming that you meet at least one of the following financial thresholds:
- Gross Income Test: Earned at least $250,000 per annum for each of the last two consecutive financial years; or
- Net Asset Test: Hold net assets of at least $2.5 million at the time of certification.
A 708 Certificate is generally valid for up to two years from the date of issue.
What is a Starter Investor?
A Starter Investor account is designed for those at the beginning of their investment journey, offering access to educational resources, market insights, and 180 Markets platform tools to help build knowledge and confidence.
As a Starter Investor, you can explore and learn across the 180 Markets platform. Participation in wholesale or sophisticated investment opportunities becomes available once you qualify as an s708 Sophisticated Investor or hold a valid AFSL and upgrade your account.
What do I need to be a 180 Investor?
To become a 180 Investor, you’ll need to provide:
- A valid s708 Sophisticated Investor Certificate signed by a Qualified Accountant
- Your brokerage account details
- Valid identification, such as a passport or driver’s licence
Once submitted, our team will review your information and guide you through the final steps to activate your account.
Capital Raises Explained
What is a Share Placement?
A Share Placement is a capital raising where a listed company issues new shares directly to selected investors to raise funds.
Placements are typically offered to sophisticated or institutional investors at a fixed price, often to support growth initiatives, acquisitions, or project development. The terms of the placement, including pricing and size, are outlined in the company’s announcement.
What is an Entitlement Offer?
An Entitlement Offer, or Rights Issue, is a capital raising that gives existing shareholders the opportunity to buy additional shares in proportion to their current holding, usually at a fixed price.
Participation is optional and subject to the terms, pricing, and key dates outlined in the company’s offer documents.
What is a Share Purchase Plan (SPP)?
A Share Purchase Plan (SPP) allows eligible existing shareholders to purchase additional shares directly from a listed company, usually at a fixed price and often at a discount to the current market price.
SPPs are subject to eligibility criteria and participation limits, which are outlined in the company’s offer documentation.
What is an Initial Public Offering (IPO)?
An Initial Public Offering (IPO) is when a private company turns public and its shares can be traded on an exchange. 180 Markets gains access to many IPOs which helps companies raise money to list. There are many reasons a company wants its shares to be publicly listed. A few of these include greater liquidity, a more diversified range of shareholders as well as greater exposure and public image.
What is a Pre-IPO?
A Pre-IPO is an early investment into a private company that is considering listing on an exchange. While the risk profile is higher than an IPO due to the lack of liquidity and potential of not listing, the price is usually done at a discount to the IPO whilst also guaranteeing access to the IPO.
What is a Convertible Note?
A Convertible Note is an instrument used to provide immediate funding for a company when shares are not issued straight away. In the case of small caps, this is usually a form of debt that will convert into equity at a later date. There are many different structures funders can use for convertible notes.
Settlements
What is a HIN?
A HIN is like a bank account number, it is used to identify your account with a broker where your shares are held. A HIN number starts with X00 or X01, followed by an 8 digit number.
What is a DVP settlement?
DVP (Delivery Versus Payment) is a settlement method where shares are delivered into your brokerage account at the same time payment is made – meaning you receive the shares in exchange for cleared funds.
- How it works: After your trade is executed and before settlement, 180 Markets will send you a CARD form. Simply forward this to your broker’s client services team. The form authorises your broker to accept the shares into your account and release payment on settlement.
- Timing: Please send the CARD to your broker as soon as possible. Brokers often “match” settlements ahead of the official date to avoid delays. Ensure sufficient cleared funds are available in your account.
- Important: Not all brokers support DVP. Please confirm with your brokerage provider before participating.
What is a Direct Settlement?
Direct Settlement is the traditional stock settlement method.
- How it works: After your trade is executed and prior to settlement, you transfer funds directly to the company (via BPAY or EFT). Once payment is received, the shares are issued into your nominated brokerage account.
- Important: Your payment and brokerage details must match exactly. Even small discrepancies (e.g. “Bob Smith” vs “Bob S. Smith”) can delay settlement and require amendments.
Still have questions? Our team is here to help.
