lecture_9_-_issue_of_shares

lecture_9_-_issue_of_shares - 1 MA826 9- Issue of Shares...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 MA826 9- Issue of Shares Equity markets Primary market : First issue of shares Secondary market : Subsequent trading of shares Stock Exchange : Facilitates buying and selling of securities Stock market : where trading takes place London and US important equity markets. 2 UK Equity Market Main Market AIM for for shares of companies shares of smaller on the Official List growth companies See eg London Stock exchange Guide to the Main Market 3 Listing Process UKLA admits Securities to the Official list LISTING London Stock Exchange admits Securities for trading On Main Market London Stock Exchange issues a single dealing notice to the market. 4 Global Equity Market LSE - London Stock Exchange: Main Market http://www.londonstockexchange.com/companies-and- advisors/main-market/companies/companies.htm See LSE: A Guide to Listing http://www.londonstockexchange.com/companies-and- advisors/main-market/companies/listing/practical-guide-to- listing.pdf Has dominates cross-border equity trading in Europe. 90% of equity trading in Europe and 60% of the world trading in equities pass through LSE. Over 50% of daily turnover is in foreign equity shares. 5 USA Equity Market Attractive for foreign companies seeking a listing. Important factor is wealth. One third of all equity shares in the world held by US investors. NYSE is the second highest where foreign equity trading is 8% of total activity. NYSE Euronext also dominant in Europe http://www.euronext.com/editorial/wide/editori al-7288-EN.html 6 Why are investors interested in global equity market? Diversification reduces risks and increases return. 24 hour trading 80 countries with regulated stock markets. 7 Why do companies seek a quotation given the costs? To raise capital further capital provide an exit route for venture capitalists increase marketability and ease valuation of shares....
View Full Document

Page1 / 29

lecture_9_-_issue_of_shares - 1 MA826 9- Issue of Shares...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online