What benefit do share purchase plans offer to existing shareholders?

Share purchase plans are a mechanism that allows existing shareholders to buy additional shares in a company, typically at a discounted price and often without the associated brokerage fees. This facility not only makes it more financially accessible for shareholders to invest more into the company they are already a part of, but it also encourages them to increase their stake and commitment to the company's future growth.

By acquiring shares at a discount, existing shareholders benefit directly through the potential of immediate financial gain if the market price of the shares rises after the purchase. The absence of brokerage fees further increases the attractiveness of these plans, as it reduces the total cost of investment for shareholders. Thus, the significant benefit lies in the cost-effective opportunity for current shareholders to increase their investment in a company, enhancing both their shareholdings and the potential value of those shares.

The other options do not accurately reflect the primary benefits of share purchase plans, as they do not pertain to the nature of these financial instruments. For example, higher voting rights typically depend on the number of shares owned rather than the mechanisms of share purchase plans. Similarly, guaranteed returns on investment and access to private equity investments are not features of share purchase plans, which are focused on share acquisitions in publicly traded companies.