Question No 15:
What is the role of advisors in a share issue?
Investment banks usually take the lead role in share issues and will advise on:
• the appointment of other specialists (e.g. lawyers)
• stock exchange requirements
• forms of any new capital to be made available
• the number of shares to be issued and the issue price
• arrangements for underwriting
• publishing the offer.
Sunday, 31 May 2015
Sunday, 24 May 2015
Cima F2 Exam Question No 14
What are the two important capital markets in the UK?
• The full Stock Exchange - a market for larger companies. Entry costs are high and scrutiny is very high for companies listed on the 'full list', but the profile of a Stock Exchange listed company's shares is very high, so the shares are extremely marketable.
• The Alternative Investment Market (AIM) - a market for smaller companies, with lower associated costs and less stringent entry criteria.
Sunday, 17 May 2015
Cima F2 Exam Question No 13
Question No 13:
What are the A stock exchange listing Disadvantages of a listing?
• Costly for a small entity (flotation, underwriting costs, etc.)
• Making enough shares available to allow a market, and hence loss of at least some control of the original owners.
• Reporting requirements are more onerous.
• Stock exchange rules for obtaining a quotation can be stringent
What are the A stock exchange listing Disadvantages of a listing?
• Costly for a small entity (flotation, underwriting costs, etc.)
• Making enough shares available to allow a market, and hence loss of at least some control of the original owners.
• Reporting requirements are more onerous.
• Stock exchange rules for obtaining a quotation can be stringent
Sunday, 10 May 2015
Cima F2 Exam Question No 12
Question No 12:
What are the A stock exchange listing Advantages of a listing?
• Once listed, the market will provide a more accurate valuation of the entity than had been previously possible.
• Realisation of paper profits, and mechanism for buying and selling shares in the future at will.
• Raise profile of entity, which may have an impact on revenues, credibility with suppliers and long-term providers of finance.
• Raise capital for future investment.
• Makes employee share schemes more accessible.
What are the A stock exchange listing Advantages of a listing?
• Once listed, the market will provide a more accurate valuation of the entity than had been previously possible.
• Realisation of paper profits, and mechanism for buying and selling shares in the future at will.
• Raise profile of entity, which may have an impact on revenues, credibility with suppliers and long-term providers of finance.
• Raise capital for future investment.
• Makes employee share schemes more accessible.
Sunday, 3 May 2015
Cima F2 Exam Question No 11
Question No 11:
A stock exchange listing
When an entity obtains a listing (or quotation) for its shares on a stock exchange this is referred to as a flotation or an Initial Public Offering (IPO).
A stock exchange listing
When an entity obtains a listing (or quotation) for its shares on a stock exchange this is referred to as a flotation or an Initial Public Offering (IPO).
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