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A short course of lectures
«Equity Market»

Ordinary sharesDefinitionEnhanced ability to raise capitalDebenturesPrice of issue is made at a discount to perceived market valueSpeculators and arbitrageursThe non-cumulative preference shareRelationship between risk and returnEquity market efficiencyPrice / book value ratioBibliographyRequired rate of returnConcluding remarkValuationIssue for cash or acquisitionBibliographyRisk-free rateA public offerTrading (secondary market)Free cash flowFund managersThe participating preference shareEconomic function of primary marketPreference share hybridsWarrantsThe law, the equity exchange and listingOwnership distributionShare transfer receiptsPrice / cash flow ratioLetters of allocationTrading system: automated tradingMain boardNegotiable instruments representing equityBetaLearning outcomesFinancial intermediariesLearning outcomesMotivation for holding equityEssence of the equity market Discounted cash flow approachResidual valueUnderwriting a share issueInvestingReplacement costA private placingBibliographyThe financial system in briefAcquisition of capital at the best possible priceTypes of companies that listPre-application submissionShares with par value, shares with no par value, and share premiumBalance receiptsUltimate borrowers: corporate sectorMulti-stage growth modelMechanics of dealing (from point of view of client)Advantages of preference sharesLearning outcomesOther stepsEquitiesCosts after listingTime frame for listingStandard deviation (a portfolio of shares)Limited liabilitySecondary marketRequired rate of returnContext & EssenceKruger randsOther sources of primary issue of listed equityFTSE / Dow industry classification benchmarkThe convertible preference shareAlternative exchangeDividend discount modelPreference sharesEquity market indicesTreasury sharesConvertible bondsLearning outcomesStatutory environment for investorsMeasurement of risk in the financial marketsExpected rate of returnSource of informationClaw-back offerDisadvantages of being listedCost of dealingPrimary marketBibliographyInvestorsExchange traded fundsGeometric mean returnPrice / sales ratioEquity valuation, inflation and interest ratesBibliographyThe prospectusLearning outcomesIncentive for employeesDisclosure of strategic information to competitionUltimate lendersBook value per shareSteps involved in a listingMotivation for listing (advantages) Calculation of indicesIssue (primary market)WarrantsStandard deviation (one asset)Significance of secondary marketRelative valuation approachOther concepts of return Annualised HPRMonetary costInstrumentsParticipants in secondary market Price / earnings ratioAppointment of professional advisorsClearing and settlementListed products other than shares Key requirements of a VCM listingRenounceable offerThe "normal" or "common" preference shareBalance sheet valuation approachCapitalisation issueMarket mechanismRisk and return: the recordMembers of the exchange (stockbrokers)Risks faced in holding financial assetsEquity derivativesCredibility and reliability of the companyRights issue (offer)Listing requirements Risk predispositionStructure of secondary equity marketWarrant ExercisingCertified transfer deedsPreference shares Learning outcomesPermanent or semi-permanent capital of the issuersIncentive for ownersStatutory backdrop to shares and share marketHolding period returnMethods of listing Liquidation valueMeasures of returnArithmetic mean returnPresent value of dividends Voting rightsVenture capital marketDevelopment capital marketPressure by public shareholdersThe money and bond markets in a nutshellElastic dividend paymentsBibliographyConstant growth dividend discount model
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