Sunday, 28 June 2015

Cima F2 Exam Question No 19

Question No 19:

A rights issue may be defined as:

Raising of new capital by giving existing shareholders the right to subscribe to new shares in proportion to their current holdings. These shares are usually issued at a discount to market price.

Sunday, 21 June 2015

Cima F2 Exam Question No 18

Question No 18:

What are the Rights issues?

A rights issue is where new shares are offered for sale to existing shareholders, in proportion to the size of their shareholding.

Sunday, 14 June 2015

Cima F2 Exam Question No 17

Question No 17:

What is Institutional investors?

Institutional investors have little direct involvement other than as investors, agreeing to buy a certain number of shares. They may also be used by the entity and its advisers to provide an indication of the likely take up and acceptable offer price for the shares. Once the shares are in issue institutional investors have a major influence on the evaluation and the market for the shares.

Monday, 8 June 2015

Cima F2 Exam Question No 16

Question No 16:

What are the Stockbrokers provide?

Stockbrokers provide advice on the various methods of obtaining a listing. They may work with investment banks on identifying institutional investors, but usually they are involved with smaller issues and placings.