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A short course of lectures
«Equity Market»

Risks faced in holding financial assetsMain boardConvertible bondsRelative valuation approachThe money and bond markets in a nutshellLearning outcomesRelationship between risk and returnDividend discount modelVenture capital marketEssence of the equity market Required rate of returnIssue (primary market)Rights issue (offer)Constant growth dividend discount modelStandard deviation (a portfolio of shares)Context & EssenceClearing and settlementParticipants in secondary market FTSE / Dow industry classification benchmarkCalculation of indicesMotivation for listing (advantages) Shares with par value, shares with no par value, and share premiumListed products other than shares Capitalisation issueStatutory environment for investorsPrice / book value ratioPrimary marketMarket mechanismPreference shares Learning outcomesPrice of issue is made at a discount to perceived market valueTreasury sharesPreference share hybridsKruger randsMechanics of dealing (from point of view of client)Price / sales ratioReplacement costRequired rate of returnMethods of listing Equity derivativesVoting rightsAlternative exchangeUnderwriting a share issueTypes of companies that listOrdinary sharesRenounceable offerInstrumentsBibliographyMonetary costGeometric mean returnEnhanced ability to raise capitalInvestingLearning outcomesWarrantsUltimate borrowers: corporate sectorLetters of allocationTrading (secondary market)Statutory backdrop to shares and share marketSource of informationEconomic function of primary marketThe convertible preference shareBibliographyEquitiesAdvantages of preference sharesPre-application submissionIssue for cash or acquisitionCosts after listingBibliographySecondary marketAcquisition of capital at the best possible priceTrading system: automated tradingMotivation for holding equityEquity market efficiencyPresent value of dividends Multi-stage growth modelExpected rate of returnRisk predispositionClaw-back offerLearning outcomesNegotiable instruments representing equityFinancial intermediariesFree cash flowBetaMeasures of returnThe financial system in briefPrice / earnings ratioThe law, the equity exchange and listingValuationOther stepsPermanent or semi-permanent capital of the issuersWarrant ExercisingFund managersLiquidation valueShare transfer receiptsPrice / cash flow ratioIncentive for ownersSpeculators and arbitrageursEquity valuation, inflation and interest ratesBalance receiptsLimited liabilityBibliographyBook value per shareAppointment of professional advisorsPressure by public shareholdersThe prospectusThe "normal" or "common" preference shareIncentive for employeesCertified transfer deedsSignificance of secondary marketMeasurement of risk in the financial marketsDevelopment capital marketHolding period returnRisk and return: the recordAnnualised HPRPreference sharesCredibility and reliability of the companyLearning outcomesDisadvantages of being listedConcluding remarkA private placingEquity market indicesInvestorsWarrantsBibliographyArithmetic mean returnUltimate lendersRisk-free rateOther sources of primary issue of listed equityThe participating preference shareStandard deviation (one asset)Ownership distributionStructure of secondary equity marketLearning outcomesSteps involved in a listingBibliographyDebenturesTime frame for listingResidual valueKey requirements of a VCM listingElastic dividend paymentsDiscounted cash flow approachOther concepts of return Exchange traded fundsBalance sheet valuation approachCost of dealingThe non-cumulative preference shareMembers of the exchange (stockbrokers)DefinitionA public offerListing requirements Disclosure of strategic information to competition
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