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What are the advantages of being an investment banker?
An Investment bank is a financial institution that helps individuals, corporations etc. in raising capital by underwriting and/or acting as the clients agent in issuance of securities (Shares, bonds etc.). An investment bank may also assist companies that are involved in mergers and acquisitions and provides services like trading stocks & derivatives, fixed income instruments, foreign exchange, commodities etc.
Can a private limited company issue its preference share on premium?
Yes. Ref. section 78 of the companies act, 1956 in which word "Securities" has been used which includes shares,debenture,bonds and ther marketable securities as used in sec 2-h of Securities Contracts ACt. Other views are solicited.
What are the characteristic of a corporation?
Public corporations issue securities
What are the characteristics of a public corporation?
Public corporations issue securities
Who are the participants in the capital market?
1. Stock exchanges 2. Brokers 3. Sub brokers 4. Custodians 5. Depositories, depository participants 6. Merchant bankers 7. Bankers to the issue 8. Underwriters 9. Registrars to the issue 10. Portfolio managers 11. Mutual funds 12. FIIs 13. Debentures trustees 14. Credit rating agencies 15. Collective investment schemes 16. Venture capital funds
Why Form 424A in SEC is issued?
: The prospectus form that a company must file to disclose information referred to in forms 424B1 and 424B3. Companies are required to file prospectus form 424B4 in accordance with Rule 424 of the Securities Exchange Act of 1933. The Securities Exchange Act of 1933 was created to help investors make informed decisions by requiring securities issuers to complete and file registration statements (including financial and material information) with the SEC before making an issue available for purchase by the public. Often registration statements filings required under the Securities Exchange Act of 1933 are also registration statements under the Investment Company Act of 1940.
When the fed wants to ease a tight money supply they will?
issue new treasury securities
Differences between the Securities Act of 1933 and the Securities Exchange Act of 1934?
1933 Act applies to original issue of securities (initial public offering) where the 1934 Act applies to secondary trading. Most securities litigation concerns actions under the 1934 Act.
What are the Functions of merchant banking?
FUNCTIONS OF MERCHANT BANK:- portfolio management leasing loan syndication project finance issue management Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"
What is preferential allotment?
When a listed company doesn't want to go for further public issue and the objective is to raise huge capital by issuing bulk of shares to selected group of people, preferential allotment is a good optionA private placement is an issue of shares or of convertible securities by a company to a select group of persons under Section 81 of the Companies Act, 1956, which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital.A private placement of shares or of convertible securities by a listed company is generally known by name of preferential allotment. A listed company going for preferential allotment has to comply with the requirements contained in Chapter XIII of SEBI* (DIP) Guidelines, in addition to the requirements specified in the Companies Act. In short, preferential issue means allotment of equity to some selected people by a company which has its share already listed.*Securities and Exchange Board of India
Which companies issue share in discount?
Companies who are in the market from long period of time can issue shares at discount.
What is first tier security market?
The first-tier security market, also known as the primary market, is where new securities are created and sold to investors for the first time. Companies issue stocks or bonds to raise capital, and this market facilitates the initial offering of these financial instruments. Transactions in this market typically involve underwriters who help set the price and distribute the securities. Once the securities are sold, they move to the secondary market, where they are traded among investors.
