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Equity Capital Markets International Economic Relations Metropolitan University Prague Martin Kolmhofer 2011/2012
Terminology ,[object Object],[object Object]
Dutch and British East India Companies among the first shareholder-owned businesses (1602 share certificated traded in Amsterdam) (Time of Explorations, trading ventures began to require more capital than a single individual was able to invest ) Investors without firsthand knowledge of their operations relied on accounting information A business that is owned by shareholders is called:  CORPORATION History
 
Raising Capital ,[object Object],[object Object],[object Object],[object Object],[object Object]
24 hour Market: The most important Financial Centers are London (central time zone), Tokyo and New York
Time Zone GMT Sydney Open Sydney Close 10:00 PM 7:00 AM Tokyo Open Tokyo Close 11:00 PM 8:00 AM London Open London Close 8:00 AM 5:00 PM New York Open New York Close 12:00 PM 9:00 PM
 
How are Stock Prices determined? Order Book: Example: You want to sell 100 stocks for a price of 28,50 EUR 28 EUR: 500 buyers, 100 sellers 28,50 EUR:  500 buyers, 400 sellers 29,00 EUR:  400 buyers, 400 sellers
Vienna Budapest Ljubljana Prague
NYSE Euronext – Deutsche Boerse Merger February 2011:  The New York and German stock exchanges have announced a $10-billion merger
How to Read a Stock Table
How to Read a Stock Table ,[object Object],[object Object],[object Object],[object Object],[object Object]
How to Read a Stock Table ,[object Object],[object Object],[object Object],[object Object],[object Object]
IPO An  initial public offering  or  initial purchase offer  ( IPO ), referred to simply as an "offering" or "flotation", is when a company issues  shares to the public for the first time.
 
Underwriting The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment.
Syndicate of Underwriters If investment banks are hesitant to shoulder all the risk of an offering. Instead, they form a syndicate of underwriters. One underwriter leads the syndicate and the others sell a part of the issue. 
Major Players The major players within the ECMs are large financial institutions such Goldman Sachs, Citigroup and UBS.
Major Players League Tables: Investment Banks: Financial institutions that assists  individuals, corporations and  governments in raising capital  (Unlike commercial banks and  retail banks, investment banks  do not take deposits)

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Equity Capital Markets

  • 1. Equity Capital Markets International Economic Relations Metropolitan University Prague Martin Kolmhofer 2011/2012
  • 2.
  • 3. Dutch and British East India Companies among the first shareholder-owned businesses (1602 share certificated traded in Amsterdam) (Time of Explorations, trading ventures began to require more capital than a single individual was able to invest ) Investors without firsthand knowledge of their operations relied on accounting information A business that is owned by shareholders is called: CORPORATION History
  • 4.  
  • 5.
  • 6. 24 hour Market: The most important Financial Centers are London (central time zone), Tokyo and New York
  • 7. Time Zone GMT Sydney Open Sydney Close 10:00 PM 7:00 AM Tokyo Open Tokyo Close 11:00 PM 8:00 AM London Open London Close 8:00 AM 5:00 PM New York Open New York Close 12:00 PM 9:00 PM
  • 8.  
  • 9. How are Stock Prices determined? Order Book: Example: You want to sell 100 stocks for a price of 28,50 EUR 28 EUR: 500 buyers, 100 sellers 28,50 EUR: 500 buyers, 400 sellers 29,00 EUR: 400 buyers, 400 sellers
  • 11. NYSE Euronext – Deutsche Boerse Merger February 2011: The New York and German stock exchanges have announced a $10-billion merger
  • 12. How to Read a Stock Table
  • 13.
  • 14.
  • 15. IPO An  initial public offering  or  initial purchase offer  ( IPO ), referred to simply as an "offering" or "flotation", is when a company issues  shares to the public for the first time.
  • 16.  
  • 17. Underwriting The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment.
  • 18. Syndicate of Underwriters If investment banks are hesitant to shoulder all the risk of an offering. Instead, they form a syndicate of underwriters. One underwriter leads the syndicate and the others sell a part of the issue. 
  • 19. Major Players The major players within the ECMs are large financial institutions such Goldman Sachs, Citigroup and UBS.
  • 20. Major Players League Tables: Investment Banks: Financial institutions that assists individuals, corporations and governments in raising capital (Unlike commercial banks and  retail banks, investment banks do not take deposits)