The document provides definitions for various terms related to the stock market and investing. It defines terms like the All Share Price Index, Ask price, Automated Trading System, Beta, Bid price, Block Transactions, Book Building, Book Value, Capitalization of Reserves, Central Depository System, Closing Price, Colombo Stock Exchange, Companies Act, Compliance Officer, Convertible Debenture, Corporate Bond, Crossings, Debentures, Debt Securities Trading System, Dematerialization, Demutualization, Derivatives, Diversification, Dividend Per Share, Dividend Yield, Dividends, Earnings Per Share, Entity, Equity, and Ex-Capitalization Period
Chapter 4 focuses on describing how to estimate and calculate Weighted Average Cost of Capital, answering the following questions:
How is the WACC calculated?
What is the Cost of Debt, Cost of Equity and Beta?
What is the Market Risk Premium and Country Risk Premium?
What is the periodicity of WACC calculation?
Trading on equity refers to a company raising fixed-cost capital such as debt and preferred shares to enhance earnings for common stockholders. This allows companies to earn disproportionate returns on assets but also carries the risk of bankruptcy if cash flows fall short. Trading on equity occurs in primary markets for new stock issues and secondary markets for subsequent trading. It benefits companies through increased earnings and favorable tax treatment of interest expenses, while increasing returns for common stockholders. Online equity trading provides investors with a fast, efficient, and paperless way to trade securities from anywhere with an internet connection.
The document discusses various topics related to the stock market including the financial system, primary and secondary markets, SEBI, types of investors and investments, trading, exchanges, and analysis techniques. It defines key terms and describes the roles of important entities like brokers, depositories, and exchanges.
The document defines several financial terms through short descriptions. It provides definitions for terms like "bulge bracket", "asked price", "basket", "analyst", "short call option", and "affordability index". The definitions range from 1-3 sentences each and concisely explain the key meaning or use of each term.
1) The document discusses top performing Equity Linked Savings Schemes (ELSS) mutual funds for investment.
2) It recommends Canara Robeco Equity - Tax Saver, ICICI Pru Tax Plan, and HDFC Tax Saver Fund as the preferred picks based on their strong 3 and 5 year rolling returns over the last 6 years.
3) ELSS funds provide tax benefits for investments up to Rs. 100,000 under Section 80C and have the advantage of a 3 year lock-in period allowing fund managers to take a long term approach.
Ratios and formulas in customer financial analysisNajib Baig
The document provides an overview of various financial ratios used in analyzing customer financial statements. It discusses liquidity ratios, profitability ratios, leverage ratios, and efficiency ratios. For each type of ratio, it provides the calculation formulas and explains what each ratio measures. The ratios can be used to evaluate aspects of a company's operations, such as its ability to meet current obligations, generate profits, utilize debt, and manage assets and expenses.
In today’s digital era, on average, people have the attention span of a goldfish: that’s why it’s important to get to the point, correctly and succinctly. Take a look at our financial glossary for a vocabulary boost.
The document defines various stock market terms from A to Z. It provides definitions for terms like A Group Shares, B1 Group Shares, B2 Group Shares, A-D Index, Alpha Factor, Annualized Yield, Arbitrage, Asset Value or NAV, Assimilation, Barometer Stock, Basis Point, Beta Factor, Bigger Fool Theory, Black Knight, Block Trade, Book Closure, Book Value, Brand Equity, Buy Order, Capital Employed, Capital Expenditure, Capital Gearing, Capital Issue, Capital Structure of Companies, Capital Surplus, Capital Turnover, Capitalization, Captive Fund, and Cash Flow. It concisely explains what each of these
Chapter 4 focuses on describing how to estimate and calculate Weighted Average Cost of Capital, answering the following questions:
How is the WACC calculated?
What is the Cost of Debt, Cost of Equity and Beta?
What is the Market Risk Premium and Country Risk Premium?
What is the periodicity of WACC calculation?
Trading on equity refers to a company raising fixed-cost capital such as debt and preferred shares to enhance earnings for common stockholders. This allows companies to earn disproportionate returns on assets but also carries the risk of bankruptcy if cash flows fall short. Trading on equity occurs in primary markets for new stock issues and secondary markets for subsequent trading. It benefits companies through increased earnings and favorable tax treatment of interest expenses, while increasing returns for common stockholders. Online equity trading provides investors with a fast, efficient, and paperless way to trade securities from anywhere with an internet connection.
The document discusses various topics related to the stock market including the financial system, primary and secondary markets, SEBI, types of investors and investments, trading, exchanges, and analysis techniques. It defines key terms and describes the roles of important entities like brokers, depositories, and exchanges.
The document defines several financial terms through short descriptions. It provides definitions for terms like "bulge bracket", "asked price", "basket", "analyst", "short call option", and "affordability index". The definitions range from 1-3 sentences each and concisely explain the key meaning or use of each term.
1) The document discusses top performing Equity Linked Savings Schemes (ELSS) mutual funds for investment.
2) It recommends Canara Robeco Equity - Tax Saver, ICICI Pru Tax Plan, and HDFC Tax Saver Fund as the preferred picks based on their strong 3 and 5 year rolling returns over the last 6 years.
3) ELSS funds provide tax benefits for investments up to Rs. 100,000 under Section 80C and have the advantage of a 3 year lock-in period allowing fund managers to take a long term approach.
Ratios and formulas in customer financial analysisNajib Baig
The document provides an overview of various financial ratios used in analyzing customer financial statements. It discusses liquidity ratios, profitability ratios, leverage ratios, and efficiency ratios. For each type of ratio, it provides the calculation formulas and explains what each ratio measures. The ratios can be used to evaluate aspects of a company's operations, such as its ability to meet current obligations, generate profits, utilize debt, and manage assets and expenses.
In today’s digital era, on average, people have the attention span of a goldfish: that’s why it’s important to get to the point, correctly and succinctly. Take a look at our financial glossary for a vocabulary boost.
The document defines various stock market terms from A to Z. It provides definitions for terms like A Group Shares, B1 Group Shares, B2 Group Shares, A-D Index, Alpha Factor, Annualized Yield, Arbitrage, Asset Value or NAV, Assimilation, Barometer Stock, Basis Point, Beta Factor, Bigger Fool Theory, Black Knight, Block Trade, Book Closure, Book Value, Brand Equity, Buy Order, Capital Employed, Capital Expenditure, Capital Gearing, Capital Issue, Capital Structure of Companies, Capital Surplus, Capital Turnover, Capitalization, Captive Fund, and Cash Flow. It concisely explains what each of these
The document discusses various types of securities and investments including stocks, bonds, and other investment vehicles. It provides details on stock exchanges in Pakistan like the Karachi Stock Exchange, as well as the different types of stocks and bonds available in Pakistan. It also briefly discusses investment banks, securities markets, and regulatory bodies like the Securities and Exchange Commission of Pakistan.
This document provides definitions for various financial terms beginning with A through E. Some key terms defined include:
- Accretion/Dilution Analysis - Determines the impact of an M&A or capital markets transaction on a company's projected EPS.
- Agent - The bank responsible for administering a project's financing.
- Analyst - Entry level position in an investment bank, typically filled by graduates for 2-3 years until promotion to Associate.
- Arranger - A bank responsible for originating and syndicating a loan transaction, often having a senior role and largest share.
- Asset Class Breakdown - Percentage of holdings in different investment types like stocks, bonds, etc.
This document discusses various types of financial assets and instruments. It begins by defining real assets as tangible items and financial assets as promises to distribute future cash flows. It then lists and describes various short-term and long-term debt instruments, as well as equity instruments like preferred and common stock. Derivatives, which derive their value from underlying assets, are also covered. The document considers factors in choosing different financial instruments from both issuer and investor perspectives.
Debt - Basics of Debt and Fixed Income BFSI academy
Basics of Bond
Characteristics of Bond
Indenture , Covenants
Secured | Unsecured
Bond Markets
Categories of Bonds
Bond calculations
Callable , Putable Bonds
Securitisation , structured debt
Some Terminology related to Secondary Market
Meaning of SECONDARY MARKET
Types of Secondary Market
Features of Secondary market
Important Functions of Secondary Market
Products traded in the stock exchange/ Market Segment
Participants in the stock market
Top 10 Stock brokers- July 2020
Process of Trading
Advantages of Secondary Market
Disadvantages of Secondary Market
Financial engineering involves the design and implementation of innovative financial products and processes. It deals with creating new financial instruments or repackaging existing ones. Some examples of financial engineering in India include debt-oriented mutual funds, interest rate futures, and floating rate bonds. Financial engineering can be applied to equity, debt, hybrid instruments, and derivatives. It is used by investment banks and for purposes like risk management, valuation, and portfolio management. The field needs further development to provide more choices for investors and corporations to improve financial efficiency and solutions.
The document provides an overview of mutual funds, including:
- Mutual funds allow investors to pool their money together with a common investment goal and have a professional fund manager invest the money.
- Investors purchase units of the mutual fund, which are valued based on the fund's net asset value which is calculated daily.
- Mutual funds offer benefits like diversification of risk, liquidity, potential tax benefits, and professional management of the invested funds.
- A fund manager is responsible for investing the pooled funds into various securities to generate returns for investors.
A course for advanced students who want to understand how options really work
John Olagues
www.truthinoptions.net
olagues@gmail.com
504-875-4825
http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470471921.html
The document defines and provides formulas for various financial ratios used to evaluate companies, including liquidity ratios, leverage ratios, profitability ratios, return ratios, valuation ratios, and risk measures. It also defines financial terms related to raising capital, costs of capital, discounted cash flow analysis, and company valuation approaches.
This document discusses different types of corporate stocks used by companies to raise long-term funds. It describes common stocks and preferred stocks, and the key differences between them. Preferred stocks have priority over common stocks in terms of dividends and assets. The document also discusses various features of stocks, including convertible, callable, sinking fund provisions, and classes of common stocks that restrict voting or have preferential dividend rights.
This document defines various terms related to the stock market. It includes definitions for terms like account day, active market, allotment letter, American Depository Receipts, arbitrage, ask price, assets, authorized share capital, averaging, bad delivery, bear market, beta, bid price, book value, broker, bull market, capital gains, cash dividend, circuit breaker, clearing house, closing price, commission, and many other financial and investment terms.
1. The document discusses various types of capital market instruments including secured premium notes, deep discount bonds, equity shares with detachable warrants, fully convertible debentures with interest, equipref shares, sweat equity shares, tracking stocks, disaster bonds, mortgage backed securities, and global depository receipts/American depository receipts.
2. It provides details on each type such as definitions, examples of companies that have issued certain instruments, and key features.
3. The purpose of the various instruments is to allow companies and governments to raise long-term funds from capital markets.
The document discusses key concepts related to stock markets and shares. It defines that shares represent fractional ownership of a company and stocks refer to the total number of shares a person owns. The major stock exchanges in India are BSE and NSE. A stock market allows for trading of company shares and derivatives. It functions as an important source for companies to raise capital and for public trading of companies. Stockholders are individuals or entities that own company shares and have associated rights.
The document is an invitation for a closing ceremony for the U-Knight Europe project. It thanks someone named D'1 for preparing and distributing the invitations to all the classrooms. The invitation is for a closing ceremony of a project called U-Knight Europe.
Greenville county museum of art final revisedJun Peralta
This document outlines membership levels, events, and information for a museum. Membership levels include Friend for $50 which provides newsletter and discounts, Contributing for $100 with additional discounts and reciprocal benefits, and Sponsor for $500 which includes trips. Listed events are an Antiques Show in October and lectures on Sundays at 2pm. Provided information is the museum hours, contact details, and website.
The document discusses particle size and gradation of soils. It describes how particle sizes can vary by orders of magnitude, from clay particles only a few microns in size to boulders over a meter wide. Soils are separated into standard size grades of clay, silt, sand, gravel etc. based on particle diameter cutoffs. Particle size is measured using sieves for larger particles and sedimentation analysis for finer particles. Sedimentation analysis involves dispersing soil in water, allowing particles to settle out over time, and measuring density to determine particle sizes based on settling rates. Accumulation curves are commonly used to represent particle size distribution data.
The individual reflects on conducting a microteaching lesson on healthy eating for young learners. Some strengths included using engaging videos, positive reinforcement of students, and clear instruction. Weaknesses identified were the video being too long, not enough teaching materials for all students to participate, and realizing fiber helps prevent constipation. The reflection helped recognize areas for improvement and ways to better engage students.
The document provides guidance on creating an effective newsletter. It recommends determining the target audience, compiling a mailing list, and considering how much time and money can be spent on publication. Frequency and length should be based on these factors. The headline and content should attract and engage readers while marketing products, services, or organizational identity. Photos, graphics, and a variety of article topics can make the newsletter informative and appealing.
The document discusses various types of securities and investments including stocks, bonds, and other investment vehicles. It provides details on stock exchanges in Pakistan like the Karachi Stock Exchange, as well as the different types of stocks and bonds available in Pakistan. It also briefly discusses investment banks, securities markets, and regulatory bodies like the Securities and Exchange Commission of Pakistan.
This document provides definitions for various financial terms beginning with A through E. Some key terms defined include:
- Accretion/Dilution Analysis - Determines the impact of an M&A or capital markets transaction on a company's projected EPS.
- Agent - The bank responsible for administering a project's financing.
- Analyst - Entry level position in an investment bank, typically filled by graduates for 2-3 years until promotion to Associate.
- Arranger - A bank responsible for originating and syndicating a loan transaction, often having a senior role and largest share.
- Asset Class Breakdown - Percentage of holdings in different investment types like stocks, bonds, etc.
This document discusses various types of financial assets and instruments. It begins by defining real assets as tangible items and financial assets as promises to distribute future cash flows. It then lists and describes various short-term and long-term debt instruments, as well as equity instruments like preferred and common stock. Derivatives, which derive their value from underlying assets, are also covered. The document considers factors in choosing different financial instruments from both issuer and investor perspectives.
Debt - Basics of Debt and Fixed Income BFSI academy
Basics of Bond
Characteristics of Bond
Indenture , Covenants
Secured | Unsecured
Bond Markets
Categories of Bonds
Bond calculations
Callable , Putable Bonds
Securitisation , structured debt
Some Terminology related to Secondary Market
Meaning of SECONDARY MARKET
Types of Secondary Market
Features of Secondary market
Important Functions of Secondary Market
Products traded in the stock exchange/ Market Segment
Participants in the stock market
Top 10 Stock brokers- July 2020
Process of Trading
Advantages of Secondary Market
Disadvantages of Secondary Market
Financial engineering involves the design and implementation of innovative financial products and processes. It deals with creating new financial instruments or repackaging existing ones. Some examples of financial engineering in India include debt-oriented mutual funds, interest rate futures, and floating rate bonds. Financial engineering can be applied to equity, debt, hybrid instruments, and derivatives. It is used by investment banks and for purposes like risk management, valuation, and portfolio management. The field needs further development to provide more choices for investors and corporations to improve financial efficiency and solutions.
The document provides an overview of mutual funds, including:
- Mutual funds allow investors to pool their money together with a common investment goal and have a professional fund manager invest the money.
- Investors purchase units of the mutual fund, which are valued based on the fund's net asset value which is calculated daily.
- Mutual funds offer benefits like diversification of risk, liquidity, potential tax benefits, and professional management of the invested funds.
- A fund manager is responsible for investing the pooled funds into various securities to generate returns for investors.
A course for advanced students who want to understand how options really work
John Olagues
www.truthinoptions.net
olagues@gmail.com
504-875-4825
http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470471921.html
The document defines and provides formulas for various financial ratios used to evaluate companies, including liquidity ratios, leverage ratios, profitability ratios, return ratios, valuation ratios, and risk measures. It also defines financial terms related to raising capital, costs of capital, discounted cash flow analysis, and company valuation approaches.
This document discusses different types of corporate stocks used by companies to raise long-term funds. It describes common stocks and preferred stocks, and the key differences between them. Preferred stocks have priority over common stocks in terms of dividends and assets. The document also discusses various features of stocks, including convertible, callable, sinking fund provisions, and classes of common stocks that restrict voting or have preferential dividend rights.
This document defines various terms related to the stock market. It includes definitions for terms like account day, active market, allotment letter, American Depository Receipts, arbitrage, ask price, assets, authorized share capital, averaging, bad delivery, bear market, beta, bid price, book value, broker, bull market, capital gains, cash dividend, circuit breaker, clearing house, closing price, commission, and many other financial and investment terms.
1. The document discusses various types of capital market instruments including secured premium notes, deep discount bonds, equity shares with detachable warrants, fully convertible debentures with interest, equipref shares, sweat equity shares, tracking stocks, disaster bonds, mortgage backed securities, and global depository receipts/American depository receipts.
2. It provides details on each type such as definitions, examples of companies that have issued certain instruments, and key features.
3. The purpose of the various instruments is to allow companies and governments to raise long-term funds from capital markets.
The document discusses key concepts related to stock markets and shares. It defines that shares represent fractional ownership of a company and stocks refer to the total number of shares a person owns. The major stock exchanges in India are BSE and NSE. A stock market allows for trading of company shares and derivatives. It functions as an important source for companies to raise capital and for public trading of companies. Stockholders are individuals or entities that own company shares and have associated rights.
The document is an invitation for a closing ceremony for the U-Knight Europe project. It thanks someone named D'1 for preparing and distributing the invitations to all the classrooms. The invitation is for a closing ceremony of a project called U-Knight Europe.
Greenville county museum of art final revisedJun Peralta
This document outlines membership levels, events, and information for a museum. Membership levels include Friend for $50 which provides newsletter and discounts, Contributing for $100 with additional discounts and reciprocal benefits, and Sponsor for $500 which includes trips. Listed events are an Antiques Show in October and lectures on Sundays at 2pm. Provided information is the museum hours, contact details, and website.
The document discusses particle size and gradation of soils. It describes how particle sizes can vary by orders of magnitude, from clay particles only a few microns in size to boulders over a meter wide. Soils are separated into standard size grades of clay, silt, sand, gravel etc. based on particle diameter cutoffs. Particle size is measured using sieves for larger particles and sedimentation analysis for finer particles. Sedimentation analysis involves dispersing soil in water, allowing particles to settle out over time, and measuring density to determine particle sizes based on settling rates. Accumulation curves are commonly used to represent particle size distribution data.
The individual reflects on conducting a microteaching lesson on healthy eating for young learners. Some strengths included using engaging videos, positive reinforcement of students, and clear instruction. Weaknesses identified were the video being too long, not enough teaching materials for all students to participate, and realizing fiber helps prevent constipation. The reflection helped recognize areas for improvement and ways to better engage students.
The document provides guidance on creating an effective newsletter. It recommends determining the target audience, compiling a mailing list, and considering how much time and money can be spent on publication. Frequency and length should be based on these factors. The headline and content should attract and engage readers while marketing products, services, or organizational identity. Photos, graphics, and a variety of article topics can make the newsletter informative and appealing.
The document provides information about mutual funds in India. It defines mutual funds as a collective investment vehicle that pools money from investors to invest in stocks, bonds, and other securities. It describes the key participants in a mutual fund structure like sponsors, trustees, asset management companies, custodians, and more. It also outlines the various types of mutual funds like equity funds, debt funds, money market funds, gold ETFs, and others based on their investment objectives, asset classes, and risk-return profiles. The document emphasizes that mutual funds provide an avenue for investors to participate in financial markets through a professionally managed and diversified portfolio.
The document outlines orders from the Government of Andhra Pradesh regarding involvement of Small and Medium Enterprises (SMEs) in e-Governance projects. It notes that while SMEs make up 80% of IT companies and contribute 30% of exports, they have faced challenges participating in large e-Governance projects. To support SMEs, the government orders that (1) SMEs be categorized based on annual turnover and registered on a vendor portal, (2) tenders be published across government sites, and (3) projects be divided based on cost and permitted to consortiums to encourage SME participation.
This document provides information about commercial real estate available for lease located at 474 Bryant Street near South Park in San Francisco. The property consists of two units totaling 21,805 square feet that can be leased separately or together. It has many amenities including new HVAC and roofing, loading capacity, natural finishes, parking, and is ADA compliant. The rent is $26 per square foot and interested parties should contact the listing agent Chris Harney for more details.
Daniel Pink is an American journalist and author who was formerly Al Gore's chief speechwriter. In his talk titled "The Puzzle of Motivation", he discussed how rewarded work versus non-rewarded work had different outcomes than expected and what truly motivates people. He used the example of the candle problem to show that a group offered a monetary reward took significantly longer to solve the problem than a non-incentivized group. Pink emphasized being passionate about your subject and keeping your audience engaged through animation and humor.
Jaakko Helminen's presentation in the Digital Storytelling, Crowdsourcing and Science Education for International Research and Training -symposium, August 29, 2013.
The document outlines an agenda for presenting persuasive messages. It discusses an upcoming chalk talk assignment, persuasive speech assignment, and critical thinking essay due dates. It then covers the components of an effective chalk talk, types of persuasive speeches, patterns for persuasive presentations, and strategies for creating persuasive messages including consistency, small gradual changes, benefit analysis, and needs fulfillment.
The document describes the development of novel predictive tools for the oil, gas, and chemical industries using a modified Vogel-Tammann-Fulcher (VTF) equation. The predictive tools can estimate process parameters with fewer calculations and constants compared to existing models. Recent applications of the predictive tools include estimating properties like solubility, heat flow, and process losses. Further research aims to develop accurate and easy to use tools to benefit engineering design and operations.
Este documento presenta un resumen de los compromisos asumidos por Centroamérica y Guatemala en relación con la gestión sostenible del agua. Reconoce los esfuerzos de Guatemala por promover su política de aguas internacionales y la importancia de impulsar acuerdos renovados entre países sobre la gestión transfronteriza de cuencas hidrográficas. Finalmente, enfatiza la necesidad de fortalecer la buena gobernanza del agua a través de principios como la cooperación, prevención del daño y participación ciudadana,
A collections framework provides a unified architecture for representing and manipulating collections of objects. It includes interfaces that define common operations on collections, implementations of those interfaces that provide reusable data structures, and algorithms that perform useful computations on collections. The main interfaces are Collection, Set, List, Queue, and Map. Collections make programming easier by reducing effort, increasing speed/quality, allowing interoperability, and fostering reuse.
This document contains sections summarizing the planning for an upcoming international festival at Cranford Community College in July 2011. It outlines details such as the artistic vision, current programming, timing requirements for staff and students, the target audience, funding, staging layout, sound requirements, staffing needs for the day, promotional responsibilities, a four week planning schedule, and audition plans for a talent show called "Cranford's Got Talent".
The document introduces a wiki created by the school library to help students enjoy reading. The wiki allows students to write about books they are reading, comment on each other's posts, suggest book recommendations, and receive suggestions from teachers. It is designed to be a safe, private, supportive and helpful online space accessible from school or home. The document provides instructions for finding and creating an individual student page on the wiki by logging in through the school library website.
Presentation given by Rima Kupryte, EIFL director at the WSIS Forum 2013 on the winning project of WSIS Project Prizes 2013 in the category C4. Capacity building:PLIP builds communities ICT skills in 23 developing and transition countries (EIFL, Electronic Information for Libraries)
Beta is a measure of the volatility of a fund compared to its benchmark. A beta close to 1 means the fund's performance closely matches the benchmark. A beta greater than 1 indicates greater volatility than the benchmark, while a beta less than 1 indicates lower volatility.
A stock exchange is a platform where buyers and sellers can transact in stocks. It can be a physical location or virtual environment. Electronic trading eliminates physical trading floors by allowing brokers to trade from their offices via automated screen-based processes connected to the exchange's central computer. The two major stock exchanges in India are the Bombay Stock Exchange and the National Stock Exchange, with 20 other regional exchanges.
This document defines and summarizes various financial terms starting with E, including EAFE index, earnings, earnings per share, economic order quantity, effective annual interest rate, efficient market hypothesis, and more. Each term is concisely defined in 1-2 sentences. There are over 50 terms defined in the document.
The document provides definitions for various terms related to mutual funds. Some key terms defined include net asset value (NAV), load funds, no-load funds, open-ended funds, closed-ended funds, equity funds, and debt funds. It also defines related financial terms like assets, liabilities, capital gains, dividends, and expense ratio among others.
Derivatives are financial instruments whose value is based on an underlying asset such as a stock. They were introduced in India in 2000 and allow investors to trade capital markets without holding large quantities of the underlying asset. Derivatives trading provides benefits like leverage, hedging, arbitrage, and fixed income opportunities but it also carries risks from volatility in the underlying asset and open interest levels. Factors like open interest, trade volumes and liquidity, time to expiry, and put-call ratios must be considered when trading derivatives.
This document provides definitions for various financial terms beginning with A through E. Some key terms defined include:
- Accretion/Dilution Analysis - Determines the impact of an M&A or capital markets transaction on a company's projected EPS.
- Agent - The bank responsible for administering a project's financing.
- Analyst - Entry level position in an investment bank, typically filled by graduates for 2-3 years until promotion to Associate.
- Arranger - A bank responsible for originating and syndicating a loan transaction, often having a senior role and largest share.
- Asset Class Breakdown - Percentage of holdings in different investment types like stocks, bonds, etc.
This report provides an analysis Merit and the demerits of investing in the Colombo Stock Market (CSE), including the process to follow for share trading and monitoring. And evaluation of the current and prospective Profitability, liquidity and financial stability of business sectors.
The document defines various financial and accounting terms including:
- Accounts payable and accounts receivable which refer to amounts owed to and by a business.
- Accrual basis accounting which recognizes income and expenses when earned or incurred rather than when payment is made.
- Amortization which gradually reduces the cost of an asset through charges to income over its useful life.
- Annual report which provides a company's financial statements and description of operations for shareholders.
- Balance sheet which reports a company's assets, liabilities, and owners' equity on a given date.
- Bond which is a loan to a company or government that pays regular interest and returns the principal at maturity.
The document discusses various aspects of new issue markets, including the meaning, functions, and methods of floating new issues. It describes the main functions of new issue markets as facilitating the transfer of resources from savers to users and mobilizing funds from savers to borrowers. The key methods of floating new issues discussed are public issues, rights issues, private placements, and preferential issues. It also covers various other topics related to new issue markets such as pricing of issues, offer documents, listing of securities, and participants in securities markets.
8588853 Dictionary To Stock Market 090527001726 Phpapp02narendrapatel12
This document defines various stock market terminology used in trading and analyzing stocks. Some key terms include:
- Settlement Date - The day transactions between stock exchange members are settled through delivery and payment.
- Active Market - A market with frequent, large volume trading of a particular stock or the market in general.
- Ask Price - The price a market maker is willing to sell a stock at.
- Bear Market - A prolonged period of falling stock prices.
- Bid Price - The price a buyer is willing to pay for a stock.
- Blue Chips - Well-established, dividend-paying companies with a history of stock price appreciation.
- Bull Market - A prolonged rise
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
This document discusses shares and the share capital structure of companies. It defines types of share capital like authorized share capital, issued capital, subscribed share capital, and paid-up capital. It also describes features of shares like residual claim to income, control rights, and limited liability. The document then outlines the legal framework governing shares and various options for companies to raise funds, such as initial public offerings, rights issues, qualified institutional placements, and preferential allotments. It also defines key terms like book building, cut-off price, and dematerialization of shares.
This document is a project report submitted by Ankit Kumar for the partial fulfillment of an MBA degree. The project report analyzes and compares various mutual funds in India with a special focus on IIFL mutual fund. It includes sections on abbreviations, list of figures, certificates from the guide and organization where the project was conducted, and an undertaking by the student.
This document provides background information on capital markets and the history of stock exchanges. It discusses how capital markets help companies and governments raise long-term funds. It then gives a brief history of stock exchanges, noting that the Bombay Stock Exchange (BSE) established in 1875 is Asia's first stock exchange. It traces the origins of stock brokers back to the 12th century in France and discusses the earliest stock exchanges that emerged in the 13th-14th centuries in Belgium and Italy. The document emphasizes that the Dutch started the first joint stock companies and the first company to issue stocks and bonds was the Dutch East India Company in 1602 on the Amsterdam Stock Exchange.
The capital market in India has undergone significant reforms since the 1990s through growth, innovations, and regulations. Key reforms included giving statutory recognition and powers to SEBI to regulate all capital market segments and protect investors. Large numbers of guidelines have been issued to develop, monitor, and regulate market operations with top priority given to investor protection. Several important reforms over the last decade include introducing regulations on insider trading, substantial acquisitions of shares, and price stabilization funds as well as establishing new stock exchanges and introducing concepts like book building and internet trading.
This document defines financial terms from A to O. It provides definitions for terms like objective (mutual funds), odd lot, odd lot dealer, off-balance-sheet financing, offering memorandum, official reserves, and more. The definitions are concise explanations of what each term means within the context of finance.
This document defines stock market terms from A to B. It provides definitions for terms like advanced companies, agent, Alberta Securities Commission, all-or-none order, American-style options, annual report, anonymous trading, arbitrage, ask or offer, assets, assignment, at-the-money, averages and indices, and averaging down.
The document discusses stock exchanges in India. It defines a stock exchange as a market where existing securities are traded and outlines some key stock exchanges in India like Bombay Stock Exchange. It describes the functions of stock exchanges like providing liquidity and safety for investors. The document also discusses concepts like listing of securities on an exchange, online trading systems, demat accounts, and the roles of different participants in stock trading like brokers and speculators.
The document discusses various types of investment instruments available through Paterson Securities, including mutual funds, fixed deposits, bonds, portfolio management services (PMS), and systematic investment plans (SIP). It provides overview information on each type of instrument, such as how mutual funds pool investor resources and diversify risk, features of open-ended and closed-ended funds, benefits of fixed deposits like capital safety and regular interest, uses of different types of bonds, minimum investment amounts for PMS, and how SIP allows regular investments in mutual funds from as little as ₹100 per month.
The document provides an overview of key concepts related to stock markets, including:
1) It defines what a stock market is and explains that it allows for the buying and selling of shares of publicly held companies.
2) It outlines the significance of stock markets, including how they allow companies to raise money and investors to participate in company growth.
3) It distinguishes between stocks and bonds, noting stocks represent partial ownership while bonds are loans.
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Yohan Prasanga Jayarathna has been offered an unconditional place to study the Masters in Business Administration full-time program delivered by the International College of Business & Technology in partnership with Cardiff Metropolitan University. He must email collaborative@cardiffmet.ac.uk to accept or decline the offer within 7 days. Additionally, he must pay the university fee of GBP 1000 in two installments of GBP 500 within 7 days of the offer letter and GBP 500 by September 30th, 2013 to secure his place.
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Dreamweaver CS5.5 includes new tools to help web designers build sites that adapt to different screen sizes and devices. This includes support for HTML5, CSS3, and frameworks like jQuery Mobile. The book guides readers through case studies that redesign a site to work on desktops, tablets and phones using these technologies. It also covers building mobile apps using PhoneGap. Overall, the book aims to help readers navigate the changing landscape of web and mobile development.
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1. A|B|C|D|E|F|I|L|M|N|O|P|R|S|T|U|V
A
All or None Board
A separate All or None Board has been created in the Colombo Stock Exchange (CSE) in order to give sellers
of large parcels of shares an opportunity of obtaining a better price. The minimum value of a trade should
be Rs. 10 million and the parcel is subject to a bidding process up to a maximum of 3 days.
All Share Price Index (ASPI)
The value-weighted price index, which incorporates all the voting ordinary shares listed on the Colombo
Stock Exchange (CSE). The base year is 1985, and the base value of the index is 100. This is the broadest and
the longest measure of the level of the Sri Lankan stock market.
Ask
The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the
ask quote will generally also stipulate the quantity of the security to be sold at that price.
Automated Trading System (ATS)
The Automated Trading System (ATS) is an online, real time system which is efficient, fault tolerant and
transparent, and provides for the secondary trading of equity.
The ATS provides;
High speed execution of transactions
Order matching on Price - Time priority
Information of price and volumes of securities being traded
Online reporting of trades being executed & price indices
Corporate announcements
Information on status of pending orders
Information on Client Holdings
B
Beta
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a
whole. Beta is used in the Capital Asset Pricing Model (CAPM), a model that calculates the expected return
of an asset based on its beta and expected market returns. It is also known as "beta coefficient".
A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the
security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will
be more volatile than the market.
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2. Bid
An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at
which the buyer is willing to purchase the security and the quantity to be purchased.
Block Transactions
The Colombo Stock Exchange (CSE) provides special procedures for Block Transactions, to facilitate the
processing of large blocks of securities without causing a substantial effect on price. There are two types of
Block Transactions:
1. Crossings.
2. All or None Blocks.
Block trades, as they are already negotiated trades, must be entered with the contra broker IDs. Until both
sides of the order with corresponding contra brokers have been entered, the block trade is deemed inactive.
Book Building
Book Building is essentially a process used by companies raising capital through Public Offerings, to aid
price and demand discovery. It is a mechanism where, during the period for which the book for the offer is
open, the bids are collected from investors at various prices, which are within the price band specified by the
issuer. The process is directed towards both the institutional as well as the retail investors. The issue price is
determined after the bid closure based on the demand generated in the process.
Book Value (BV)
The Book Value is the ordinary shareholders’ equity or the net worth of the firm. Book Value per share is the
net worth divided by the number of common shares.
C
Capitalization of Reserves
Capitalization of Reserves, also known as a bonus issue and / or stock dividend, is the issue of shares by the
company to its existing shareholders by capitalizing its revenue reserves. Shareholders receive shares free of
charge in proportion to their ownership. Capitalization of reserves issues increase the number of shares
outstanding without changing shareholders’ equity.
Central Depository System (CDS)
A wholly owned subsidiary of the Colombo Stock Exchange (CSE), the Central Depository System (Pvt) Ltd
(CDS) is the depository for all listed securities in Sri Lanka. It provides a safe keeping facility and an
electronic record of all listed securities that are dematerialized.
Closed-End Fund
A unit trust fund which after the initial offer period does not, unless otherwise approved by the Securities
and Exchange Commission of Sri Lanka (SEC), issue new units or redeem units in issue until the liquidation
of such fund. These Funds can be listed and traded like a share on a Stock Exchange.
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3. Closing Price
The Volume Weighted Average Price (VWAP) for every trading day is the official Closing Price for each
security.
Colombo Stock Exchange (CSE)
The Colombo Stock Exchange (CSE) is the organization responsible for the operation of the Stock Market in
Sri Lanka. The CSE is a company limited by guarantee duly incorporated in Sri Lanka and is licensed by the
Securities and Exchange Commission of Sri Lanka (SEC) to operate as a stock exchange in Sri Lanka.
Companies Act
Means the Companies Act No. 7 of 2007 and any amendment thereto
Compliance Officer
An independent person appointed by a Member Firm who could ensure strict compliance of all CSE’s rules
and regulations in an effective and efficient manner. He/she is employed in a senior managerial level and
reports directly to the Chief Executive Officer of the Member Firm and has to file a monthly report with the
CSE according to the specified guidelines. The reports of the Compliance Officer should be open for
inspection by both the CSE and SEC.
Convertible Debenture
A Convertible Debenture is a debt instrument that can be converted into stock at the option of the holder or
the issuer. Instead of receiving payment, the buyer of the debenture can chose to take shares in the
company.
Corporate Bond
A corporate bond is a long-term debt security issued by a company, with a fixed periodic interest rate and a
maturity of more than one year.
Crossings
A Crossing is a block of shares traded, that is more than 5% of the issued number of shares of the security or
has a value greater than Rs. 20 million.
D
Debentures
Corporate bonds that are not secured by specific assets are called unsecured bonds or debentures. They are
backed only by the general credit worthiness of the issuer.
Debt Securities Trading System (DEX)
An electronic trading system for the secondary trading in Corporate Debt Securities and beneficial interest
of Government Treasury Bills and Bonds at the Colombo Stock Exchange since 2004.
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4. Dematerialization
Dematerialization is the process by which physical certificates are replaced by electronic book keeping.
Listed securities could be either held in a physical scrip form or in a dematerialized electronic form in the
CDS. However, with the introduction of the Central Depository System in 1991, it is mandatory for securities
to be in DEMAT form to be traded in the secondary market. Actual share/debenture certificates are slowly
being removed and retired from circulation in exchange for electronic recording.
Demutualization
A demutualization of an organization involves the conversion of the organization from a not-for-profit
member owned organization to a for-profit shareholder owned corporation.
Derivatives
Derivatives are securities, which derive their value from an underlying security. The underlying security may
represent stocks, bonds, foreign exchange, commodities etc. Derivatives are used to hedge against risk in
investment positions or to speculate on the future value of the underlying asset so as to earn a profit if the
value of the underlying assets moves in the predicted direction.
Diversification
A risk management technique that mixes a wide variety of investments within a portfolio. The rationale
behind this technique contends that a portfolio of different kinds of investments will, on average, yield
higher returns and pose a lower risk than any individual investment found within the portfolio.
Diversification strives to smooth out unsystematic risk events in a portfolio so that the positive performance
of some investments will neutralize the negative performance of others. Therefore, the benefits of
diversification will hold only if the securities in the portfolio are not perfectly correlated.
Dividend Per Share (DPS)
The Dividend Per Share is the total dividends to ordinary shareholders during a specific period divided by
the number of ordinary shares outstanding.
Dividend Yield (DY)
Dividend Yield indicates the ability to generate dividend income as a percentage of the investment. This is
calculated as Dividend Per Share divided by the market price of the share.
Dividends
Dividends are payments made by a company to its shareholders. Dividend payments are proposed by
company directors. Payments on preference shares are usually a fixed amount. However, for ordinary shares,
the dividend can vary with the financial performance of the company. Therefore, if a company has not had
profits or has had low profits, dividends could be withheld from ordinary shareholders.
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5. E
Earnings Per Share (EPS)
The Earnings Per Share is the net income available for distribution to ordinary shareholders divided by the
number of ordinary shares outstanding.
Entity
This could be:
A public company incorporated under the Companies Act or any other previous Companies Acts
A company incorporated outside Sri Lanka
A corporate body incorporated under a statute
Equity
A share or any other security representing an ownership interest is collectively known as equity. On a
company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the
retained earnings (or losses) is known as equity. Also referred to as "shareholders' equity".
Ex-Capitalization Period ("XC")
The period from the Market Day after the date of allotment until the date of completion of deposit to the
respective shareholders’ CDS Accounts is known as the Ex-Capitalization Period. Ex-Capitalization is
indicated by the letters "XC" in the stock tables.
Ex-Dividend Date ("XD")
The date on or after which a security is traded without a previously declared dividend. After the ex-date, a
stock is said to trade ex-dividend. This is the date on which the seller, and not the buyer, of a stock will be
entitled to a recently announced dividend. When shares go ex-dividend, the stock tables include the symbol
"XD".
Ex-Rights Period ("XR")
The period from the Market Day after the date of provisional allotment until the last date of acceptance and
payment for Rights is known as Ex-Rights Period. Ex-Rights Period is indicated by the letters "XR" in the
stock tables.
F
Fairly Valued
If the prevailing Market Value is equal to Intrinsic Value, then the share is Fairly Valued. An investor paying
the current Market Value can expect to earn a rate of return that is equal to the required rate of return for
that share.
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6. I
Impact Cost
Impact cost can be defined as the percentage change between the average execution price and ideal price
(average of best buy and best sell). It tells us how much extra we have to pay if the market is not perfectly
liquid.
The lower the cost, the higher the liquidity and vice-versa. It shows the rise/fall in the stock price (in
percent) against buying/selling the desired quantity of the security compared to its ideal price. Impact cost
can be calculated for both the buyers’ side and sellers’ side. In a perfect market, impact cost for any quantity,
should be close to 0.
Initial Public Offering (IPO)
The first sale of shares by a private company to the public. IPOs are often issued, seeking capital to expand,
but can also be done by large privately owned companies looking to become publicly traded. In an IPO, the
issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to
issue, best offer price and time to bring it to market. Also applicable to first sale of debentures and units of
closed end funds. An IPO can either be an Offer for Sale or an Offer for Subscription.
Intrinsic Value
The Intrinsic Value is the true or fundamental value of a security given expectations regarding its future
cash flows. This value is not observed and has to be estimated using stock valuation methods. The Intrinsic
Value represents the maximum price that the investor should pay to purchase a security. This may not
necessarily be equal to the current market price.
Introduction
An Introduction is the listing of the Securities of an Entity on the Exchange without the requirement of an
Initial Public Offering (IPO).
Investment Banks
The role of investment banks can vary depending on the arrangement between the issuer and the
Underwriter. The services of the Investment Bank may include advisory as well as underwriting. They can
advise the issuer on the characteristics of the issue, such as pricing and timing of the offering. They can also
agree to undertake the selling of shares to investors on some basis. When the investment bank guarantees
that the shares not subscribed for by the public will be taken by the investment bank, the issue is said to be
an underwritten offering.
L
Limit Order
A limit order is an order that specifies a price limit. A limit buy order specifies the maximum buy price, and
a limit sell order indicates the minimum selling price. The purpose of a limit buy order is to ensure that the
price paid to buy a security does not exceed the maximum price the investor is willing to pay. Thus, a limit
buy order provides protection to the buyer. Similarly, a limit sell order provides some protection to the seller
in that the security will not be sold below the price which the investor has specified.
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7. Liquidity
The degree to which an asset or security can be bought or sold in the market without affecting the asset's
price. Liquidity is characterized by a high level of trading activity. Assets that can be easily bought or sold
are known as liquid assets. In other words, the ability to convert an asset to cash quickly is also called
“Liquidity”. This is also known as “Marketability”
Listed Entity
An Entity which has its Shares or Debt Securities listed on the Exchange. Also referred to as “Quoted
Company.”
M
Managing Company
Any company licensed by the SEC for the purpose of managing a Fund.
Margin Trading
The purchase of stocks by borrowing a portion of the investment using stocks as collateral. In other words,
margin trading is a leveraged transaction whereby the investor pays for the stock using investor’s own
money and funds borrowed from the broker. In Sri Lanka, Stockbrokers can provide a margin up to 50%.
Market Capitalization
Market capitalization is calculated by multiplying a company's shares outstanding by the current market
price of one share. This figure is used to determine a company's size, as opposed to sales or total asset
figures. This is frequently referred to as "market cap".
Market Capitalization is also calculated for the whole market as the total market value of all voting ordinary
shares of all listed companies which is the addition of market caps of all listed companies.
Market Day
Any day on which the Exchange is open for trading.
Market Order
A Market Order is an order to buy or sell a stock at the best current market price. A market buy order is an
order to buy at the lowest ask price, and a market sell order is an order to sell at the highest bid price. The
purpose of a market order is to get a trade executed immediately at the best market price.
Market Value
The Market Value is the value determined by the consensus of market participants. The prices we observe in
stock markets are market prices. They are a result of the interaction between the demand for and the supply
of shares.
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8. Milanka Price Index (MPI)
The value-weighted price index, which incorporates only 25 selected stocks listed on the CSE. These stocks
represent the largest and the most liquid 25 stocks. The base date is December 31, 1998, and the base index
value is 1000. The constituent stocks in the index are revised bi-annually.
N
Non-Voting Shares
A non-voting share entitles a shareholder to all ordinary share rights except voting rights. These shares can
be a proportion of the issued capital of a company.
Normal Lot
An order for 100 Shares or its increments.
Number of Traded Companies
The number of companies trading on the CSE on any market day.
Number of Trades
The total number of transactions of a company's shares on the Stock Exchange on a particular day.
O
Odd Lots
An Odd Lot is an order for less than 100 shares. Odd lots are traded on a separate order book and do not
affect Market Indices or the Volume Weighted Average Price (VWAP).
Offer for Sale
An Offer for Sale is an invitation to the public by, or on behalf of holder(s) or allottee(s) to subscribe for its
Securities already in issue.
Offer for Subscription
An Offer for Subscription is an invitation to the public by or on behalf of an Entity to subscribe for its
Securities.
Order
The instruction, by a customer to a brokerage, for the purchase or sale of a security with specific conditions.
There are several different types of orders, each offering different conditions.
Ordinary Shares
An ordinary share represents the equity ownership of a company. This entitles the shareholder to a
proportion of the company's profits, Capitalization of Reserves and Rights Issues. Other privileges include
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9. receiving interim financial statements and annual reports, and participation at Annual General Meetings.
However, ordinary shareholders are at greater risk in the event of liquidation, having the last call on the
assets of the company, after all company liabilities have been met. Also known as “Common Shares”.
Overvalued Share
If the Market Value is greater than the Intrinsic Value, the Share is overvalued. An Overvalued Share is a sell
candidate if an investor already owns that share in the Portfolio and should not be bought if someone is
evaluating it as a possible addition to the portfolio. It would not make sense to have Overvalued Shares in a
Portfolio since such Shares are expected to earn a rate of return less than the required return.
P
Parcel of Shares
A fixed number of shares which are sold as a group and treated as a unit.
Portfolio
A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-
traded and closed-end fund counterparts. Portfolios are held directly by investors and/or managed by
financial professionals.
Preference Shares
Preference Shares also represent ownership interest in a company. Preference shareholders do not have
voting rights but have priority over ordinary shareholders in terms of payment of dividends. The dividend
rate on preferred stocks is fixed. In the event of the liquidation of the company, preferred shareholders have
priority in distribution of any surplus assets.
Present Value
Present Value indicates today's value of a sum to be received in the future. This is the addition of a future
stream of payments discounted at a given interest rate or required rate of return.
Price Band
Price Bands are pre-specified upper and lower limits within which stock prices are allowed to fluctuate in a
single day. The main purpose of price limits is to moderate excessive volatility that may result from market
manipulation and excessive speculation. Price limits have the effect of reducing daily volatility, and
spreading volatility over long periods of time.
Price Earnings Ratio (PER) or P/E multiple
A valuation ratio of a company's current share price divided by its Earnings Per Share (EPS). EPS is usually
from the last four quarters (trailing P/E), but sometimes it can be taken from the estimates of earnings
expected in the next four quarters (projected or forward P/E). A third variation uses the sum of the last two
actual quarters and the estimates of the next two quarters.
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10. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared
to companies with a lower P/E. It's usually more useful to compare the P/E ratios of one company to other
companies in the same industry, to the market in general or against the company's own historical P/E.
The P/E is sometimes referred to as the "multiple", because it shows how much investors are willing to pay
per unit of earnings.
Price to Book Value (PBV)
A ratio used to compare a stock's market value to its Book Value. It is calculated by dividing the current
share price by the book value per share. A lower PBV ratio could mean that the stock is undervalued.
However, it could also mean that something is fundamentally wrong with the company. As with most ratios,
this varies by industry.
Primary Market
The market for the issue of new securities by companies or governments to investors to raise funds. In the
Primary Market, the securities are purchased directly from the issuer. The Primary Market serves to channel
funds from savers to borrowers. This activity is facilitated by financial intermediaries, such as brokers and
investment banks.
Private Placement
The sale of securities directly to an institutional investor, such as a bank, unit trust, insurance company,
pension fund, foundation or retail investor, without an Initial Public Offering (IPO). Usually, the securities
are bought for investment purposes rather than resale.
Profit After Tax
It is the net profit earned by the company after deducting all expenses such as interest, depreciation and tax.
Profit After Tax can be fully retained by a company to be used in the business. However, Dividends are paid
to the shareholders from this residue.
Prospectus
A formal legal document which companies issue when conducting an Initial Public Offering and is required
by and filed with the Stock Exchange. A prospectus should contain the facts that an investor needs to make
an informed investment decision such as the details of the offer, the business activities of the company, its
financial standing, future plans, its directors and management and for what purpose the company is raising
capital.
Also known as an "Offer Document".
Public Holding
Shares of a Listed Entity held by any person other than those directly or indirectly held by;
Its parent, subsidiary or associate companies or any subsidiaries or associates of its parent
company; and
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11. Its directors who are holding office as directors of the Entity, their spouses and children under 18
years of age; and
Chief Executive Officer, his/her spouse and children under 18 years of age; and
Any single shareholder who holds 10% or more of the shares
R
Rating
An evaluation of a corporate or municipal bond's relative safety from an investment standpoint. Basically, it
scrutinizes the issuer's ability to repay principle and make interest payments. Bonds are rated by rating
organizations and range from AAA or Aaa (the highest), to C or D, which represents a company that has
already defaulted.
Rights Issues
A Rights Issue is the issue of shares by the company to its existing shareholders at a price less than the
current market price of the share. Each shareholder is given the option to purchase a number of shares in
proportion to the number of shares already held by the shareholder.
The list of shareholders entitled to a Rights Issue is taken as of the Market Day before the XR date.
S
Scrip Dividend
A dividend paid as additional shares or stock rather than as cash.
Secondary Market
The Secondary Markets are the markets in which previously issued securities are traded among investors.
Stock and bond exchanges, are examples of secondary markets for securities. While securities are purchased
directly from the issuer in the Primary Market, in the Secondary Market, investors purchase securities from
other investors. The transactions among investors are generally carried out through an intermediary, such
as a Stockbroker or dealer.
Sector Price Indices
The listed companies of Colombo Stock Exchange (CSE) are divided into 20 sectors and a price index for
each sector is calculated on a daily basis. Each index indicates the direction of the price movement of the
sector.
Secured Debentures
Corporate Bonds that are secured by a legal claim on some specific physical assets of the issuing company.
Securities
Refers to debentures, stocks, shares, funds, bonds or notes issued or to be issued by any Government or of
any body, whether corporate or unincorporated, including any rights, options or interests (whether
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12. described as units or otherwise), but does not include bills of exchange or promissory notes or certificate of
deposits issued by a bank.
Securities and Exchange Commission of Sri Lanka (SEC)
The Securities and Exchange Commission of Sri Lanka (SEC) was established in pursuance of the Securities
and Exchange Commission of Sri Lanka Act, No. 36 of 1987 as amended by Act No. 26 of 1991 and Act No. 18
of 2003.
The Commission's objectives include:
the creation and maintenance of a market in which securities can be issued and traded in an orderly
and fair manner;
the protection of the interest of investors;
the operation of a Compensation Fund to protect investors from financial loss arising as a result of
any licensed stock broker or licensed stock dealer being found incapable of meeting his contractual
obligations; and
the regulation of the securities market and to ensure that professional standards are maintained in
such market.
Share
A unit of ownership interest in a company or financial asset. While owning shares in a business does not
mean that the shareholder has direct control over the business's day-to-day operations, being
a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the
form of Dividends.
Share Allotment
The process of allocating shares between shareholders, usually pro rata or according to some prior
agreement, in an initial public offering.
Share Transaction Levy
A government levy on share transactions taking place in the Colombo Stock Exchange. The current rate
applicable is 0.2% on the seller on the disposal value of the shares and 0.2% on the buyer on the purchase
value of the shares.
Share Warrant
A Share Warrant is like an option. It gives the holder the right but not the obligation to buy shares at a
certain price, quantity and future time. A Share Warrant is issued by a company, and trades as an
instrument of the Stock Exchange.
Stated Capital
Stated Capital in relation to a company means the total of all amounts received by the company or due and
payable to the company in respect of the issue of shares and calls on shares.
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13. Stock
Please refer “Share”.
Stock Market
The market in which shares are issued and traded either through exchanges or over-the-counter markets.
Also known as the equity market, it is one of the most vital areas of a market economy as it provides
companies with access to capital and investors with a slice of ownership in the company and the potential
of gains based on the company's future performance.
Stockbroker
A stockbroker is a firm that acts as an intermediary for stock market transactions, offering investors a
variety of services in addition to investment advice and executing buy and sell orders of investors. The
Stockbrokers’ fee is the brokerage. Stockbroker firms that operate on CSE are generally known as Member
Firms and Trading Member Firms.
Sub division of shares
Sub division of shares is where a company subdivides its outstanding shares so as to increase the number of
shares. For example, in a 1-for-1 split, each shareholder receives an additional share for each share he or she
holds. The company does not receive any funds, and hence, there is no change in the value of the firm. Since
the firm has more shares now, the price per share will decline to reflect this.
T
Tick Size
The tick size of a trading instrument is its minimum price movement; in other words, it is the minimum
increment by which prices can change. Presently, the tick size at CSE is 10 cents.
Total Return Indices (TRI)
The Total Return Indices reflect returns due to both price changes and dividend income. In computing the
TRI, it is assumed that dividends earned from a share are re-invested in the market.
The ASPI computed on total returns is known as ASTRI and the MPI computed on total returns is known as
MTRI. TRI values are also calculated for the 20 Sector Indices.
Trading Halt
A temporary suspension in the trading of a particular security on an exchange, usually in anticipation of a
news announcement/clarification or to disseminate a news announcement/clarification. Trading in the
security will resume as soon as the announcement/clarification from the company is disseminated to the
market.
Treasury Bills (T-Bills)
Treasury bills are short-term securities issued by the government. They are issued on a discount basis and in
three maturities: 3-month (91-day), six-month (182-day) and 12-month (364-day) bills. These are issued to
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14. the public through a weekly auction conducted by the Department of Public Debt of the Central Bank of Sri
Lanka on behalf of the Treasury.
Treasury Bonds (T-Bonds)
Treasury bonds are long-term government debt securities. They can be issued with any maturity greater
than one-year. The Sri Lankan government has issued bonds with 2, 3, 4, 5, 6, 10, 15 and 20-year maturities.
These are also sold to the public through a competitive auction held by the Department of Public Debt of
the Central Bank of Sri Lanka on behalf of the Treasury.
U
Undervalued Share
If the Market Value is less than the Intrinsic Value, then the share is undervalued. An Undervalued Share is
considered a good candidate for purchase or a good buy, and an investor can expect to earn a rate of return
in excess of the required rate of return.
Unrealized Profit or Loss
A profit or loss that results from holding on to an asset rather than cashing it in and using the funds.
Unsecured Debentures
Corporate Bonds that are not secured by any specific physical assets of the issuing company. They are
backed only by the general credit worthiness of the issuer.
V
Value of Turnover
Value of turnover of any market day consists of the total value of shares traded on that date. The turnover of
each company is determined by summing up the value of each transaction.
Volume of Turnover
The volume of turnover is the total number of securities traded on a market day. Both equities and
debentures contribute to turnover.
Volume Weighted Average Price (VWAP)
The VWAP is arrived at by dividing the total value traded during the period by the total volume of shares
traded during the same period of every traded security. The CSE publishes the volume weighted average
price (VWAP) based on trades executed during the last one hour of trading. The VWAP is taken as the
Closing Price for each security at the end of each trading day.
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