Stocks

The two major banks used by Western societies are savings banks and investment banks. Saving Banks are precisely what the name suggests; they hold on to it for you. This money is often used or loaning out to people in the form of mortgages and the like (which the bank collects interest on for profit), which is where banks make the money to pay you interest in money you keep in your account.

Investment Banks (or Commercial Banks) are more designed for investors and businesses looking to indirectly turn a profit. The main difference here is that these banks typically trade securities and play the markets to make their profits, instead of through interest on loans.

GUIDELINES FOR PREFERENTIAL ISSUES 13.0 The preferential issue of equity shares/ Fully Convertible Debentures (FCDs) / Partly Convertible Debentures (PCDs) or any other financial instruments which would be converted into or exchanged with equity shares at a later date, by listed companies whose equity share capital is listed on any stock exchange, to any select group of persons under section 81(1A) of the Companies Act 1956 on private placement basis shall be governed by these guidelines. 13.1Such preferential issues by listed companies by way of equity shares/ Fully Convertible Debentures (FCDs) / Partly Convertible Debentures (PCDs) or any other financial instruments which would be converted into / exchanged with equity shares at a later date, shall be made in accordance with the pricing provisions mentioned below:

13.1.1 Pricing of the issue 13.1.1.1The issue of shares on a preferential basis can be made at a price not less than the higher of the following: i) The average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during the six months preceding the relevant date;

OR ii) The average of the weekly high and low of the closing prices of the related shares quoted on a stock exchange during the two weeks preceding the relevant date.

Explanation a) "relevant date" for the purpose of this clause means the date thirty days prior to the date on which the meeting of general body of shareholders is held, in terms of Section 81(1A) of the Companies Act, 1956 to consider the proposed issue. b) "stock exchange" for the purpose of this clause means any of the recognised stock exchanges in which the shares are listed and in which the highest trading volume in respect of the shares of the company has been recorded during the preceding six months prior to the relevant date.

13.1.2 Pricing of shares arising out of warrants, etc.13.1.2.1 (a) Where warrants are issued on a preferential basis with an option to apply for and be allotted shares, the issuer company shall determine the price of the resultant shares in accordance with Clause 13.1.1.1 above. (b) The relevant date for the above purpose may, at the option of the issuer be either the one referred in explanation (a) to Clause 13.1.1.1 above or a date 30 days prior to the date on which the holder of the warrants becomes entitled to apply for the said shares. 13.1.2.2The resolution to be passed in terms of section 81(1A) shall clearly specify the relevant date on the basis of which price of the resultant shares shall be calculated.

(a) An amount equivalent to atleast ten percent of the price fixed in terms of Clause 13.1.1.1 above shall become payable for the warrants on the date of their allotment. (b) The amount referred to in sub-clause (a), shall be adjusted against the price payable subsequently for acquiring the shares by exercising an option for the purpose. (c) The amount referred to in sub-clause (a) shall be forfeited if the option to acquire shares is not exercised.

13.1.3 Pricing of shares on conversion 13.1.3.1 Where PCDs/FCDs/other convertible instruments, are issued on a preferential basis, providing for the issuer to allot shares at a future date, the issuer shall determine the price at which the shares could be allotted in the same manner as specified for pricing of shares allotted in lieu of warrants as indicated in Paras 13.1.2.1& 13.1.2.2 above. 13.1A The explanatory statement to the notice for the general meeting in terms of section 173 of the Companies Act, 1956 shall contain -

# # the object/s of the issue through preferential offer, # intention of promoters/ directors/ key management persons to subscribe to the offer, # shareholding pattern before and after the offer, # proposed time within which the allotment shall be complete # the identity of the proposed allottees and the percentage of post preferential issue capital that may be held by them. 13.1B A listed company shall not make any preferential issue of equity shares, Fully Convertible Debentures, Partly Convertible Debentures or any other instrument which may be converted into or exchanged with equity shares at a latter date if the same is not in compliance with the conditions for continuous listing.

13.2 Currency of financial instruments 13.2.1 In case of Warrants/PCDs/FCDs/or any other financial instruments with a provision for the allotment of equity shares at a future date, either through conversion or otherwise, the currency of the instruments shall not exceed beyond 18 months from the date of issue of the relevant instrument.

13.3 Non-transferability of financial instruments 13.3.1 (a) The instruments allotted on a preferential basis to the promoter / promoter group as defined in Chapter VI in Clause [6.4.2 (m)] of these guidelines, shall be subject to lock-in of 3 years from the date of their allotment. (b) In any case, not more than 20% of the total capital of the company, including capital brought in by way of preferential issue, shall be subject to lock-in of three years from the date of allotment. (c) In addition to the requirements for lock in of instruments allotted on preferential basis to promoters/ promoter group as per clause 13.3.1 (a) and (b), the instruments allotted on preferential basis to any person including promoters/promoters group shall be locked-in for a period of one year from the date of their allotment except for such allotments on preferential basis which involve swap of equity shares/ securities convertible into equity shares at a later date, for acquisition. (d) The lock-in on shares acquired by conversion of the convertible instrument/exercise of warrants, shall be reduced to the extent the convertible instrument warrants have already been locked-in.

EXPLANATION: (a) For the purpose of this clause "total capital" of the company shall mean - (i) equity share capital issued by way of public/rights issue including equity shares emerging at a later date out of any convertible securities/exercise of warrants and (ii) equity shares or any other security convertible at a later date into equity issued on a preferential basis in favour of promoter/promoter groups. (b) (i) For computation of 20% of the total capital of the company, the amount of minimum promoters contribution held and locked-in, in the past as per guidelines shall be taken into account. (ii) The minimum promoters contribution shall not again be put under fresh lock-in, even though it is considered for computing the requirement of 20% of the total capital of the company, in case the said minimum promoters contribution is free of lock-in at the time of the preferential issue. 13.3.2 These locked in shares/instruments may be transferred to and amongst promoter/promoter group or to a new promoter(s) or person(s) in control of the company, subject to continuation of lock-in in the hands of transferee(s) for the remaining period and compliance of Securities and Exchange Board of India (Substantial Acquisition of shares and Takeovers) Regulations, 1997, as applicable.' .

13.4 Currency of shareholders resolutions 13.4.1 Allotment pursuant to any resolution passed at a meeting of shareholders of a company granting consent for preferential issues of any financial instrument, shall be completed within a period of three months from the date of passing of the resolution. 13.4.2 - The equity shares and securities convertible into equity shares at a later date, allotted in terms of the above said resolution shall be made fully paid up at the time of their allotment. Provided that payment in case of warrants shall be made in terms of clause 13.1.2.3 above. 13.4.3 If allotment of instruments and dispatch of certificates is not completed within three months from the date of such resolution, a fresh consent of the shareholders shall be obtained and the relevant date referred to in explanation (a) in paragraph 13.1.1.1 above will relate to the new resolution.

13.5 Other Requirements

(a) In case of every issue of shares/warrants/FCDs/PCDs/ or other financial instruments having conversion option, the statutory auditors of the issuer company shall certify that the issue of said instruments is being made in accordance with the requirements contained in these guidelines. (b) Copies of the auditors certificate shall also be laid before the meeting of the shareholders convened to consider the proposed issue.

(c) In case of preferential allotment of shares to promoters, their relatives, associates and related entities, for consideration other than cash, valuation of the assets in consideration for which the shares are proposed to be issued shall be done by an independent qualified valuer and the valuation report shall be submitted to the exchanges on which shares of the issuer company are listed.

Explanation - For the purpose of this clause the word valuer shall have the same meaning as assigned to the term under clause (r) of sub-regulation (1) of Regulation 2 of the SEBI (Issue of Sweat Equity) Regulations, 2002 13.5A The details of all monies utilised out of the preferential issue proceeds shall be disclosed under an appropriate head in the balance sheet of the company indicating the purpose for which such monies have been utilised. The details of unutilised monies shall also be disclosed under a separate head in the balance sheet of the company indicating the form in which such unutilised monies have been invested

13.6 Preferential allotments to FIIs 13.6.1 Preferential allotments, if any to be made in case of Foreign Institutional Investors, shall also be governed by the guidelines issued by the Government of India/Board/Reserve Bank of India on the subject.

13.7 Non-Applicability of the guidelines 13.7.1 Clauses 13.1 to 13.5 shall not be applicable in the following cases: # # where the further shares are allotted in pursuance to the merger and amalgamation scheme approved by the High court. (ii) (a) where further shares are allotted to a person / group of persons in accordance with the provisions of rehabilitation packages approved by BIFR. (b) In case, such persons are promoters or belong to promoter group as defined in Explanation I and II, Clause 6.4.2.1 of Chapter VI of these guidelines, the lock-in provisions shall continue to apply unless otherwise stated in the BIFR order. (iii) where further shares are allotted to All India public financial institutions in accordance with the provision of the loan agreements signed prior to August 4, 1994.

Horry Telephone Cooperative was founded in 1954. In the old days, members actually received a stock certificate as proof of membership. The shares had no value except maybe the $10 it cost to purchase them and they were never to be traded. As long as the customer retained service they are eligible for capital credits, but the shares accrued no additional value.

If you have questions or concerns about Horry Telephone Cooperative Inc capital credits (stock), please contact our Accounting Department at (843) 369-8530.

Thank you,

HTC Representative

The process of investing in the share market, either individually or through a broker is known as stock broking, in simple terms. This is primarily done by opening a Demat account. If done through a broker, he opens an account, helping you to operate through online stock broking facility. Going ahead the broker suggests investment ideas and strategies suiting individual requirements and based on his objective of investment. Tenure of investment, the selected financial instruments and their respective companies, the schemes, the risk taking ability, the sum available for investment, all are considered while forming investment choices. After the amount is invested, the broker tracks and monitors the investments, changes or reinvests depending on the performance and generates reports for them. This entire process is known as stock broking.