Corporate actions are events initiated by publicly listed companies that may affect share prices and shareholders. Common examples include dividend payments, share splits, rights issues, and bonus issues. Corporate actions are typically undertaken to return profits to shareholders, affect share prices, raise extra money, or increase profits through restructuring. Shareholders can find information about corporate actions by contacting the relevant share registry or ANZ Securities NZ Scrip Settlements. Dividends are the most common corporate action, where companies may pay dividends annually, semi-annually, or quarterly. Share splits and consolidations adjust the number of shares and price to make shares more or less affordable, while maintaining the same total market value. Rights issues and bonus issues allow
A corporate action is an event initiated by a public company that affects the securities issued by the company. Some corporate actions like dividends or bond coupon payments have a direct financial impact on shareholders or bondholders, while others like a stock split may indirectly impact shareholders by increasing stock liquidity and price. Common corporate actions include stock splits, name changes, bond exchanges, bonus issues, conversions, dividend reinvestment plans, and partial or full bond calls.
This presentation will help u out in understanding the basics of corporate actions in investment banking and also a brief about Reference Data Management
The presentation slide is on stock valuation. We have tried to present the various techniques to stock valuation under which different methods are discussed with illustrations. Key concepts:
Zero Growth Model
Balance sheet Technique
Constant Growth Model
Two-stage growth Model
Feel Free to comment.
This document discusses the meaning, effects, objectives, and accounting treatment of buybacks of shares by a company. A buyback refers to a company purchasing its own shares from shareholders. This reduces share capital and returns part of the issued capital to shareholders. Objectives include increasing share value and EPS as well as using excess cash. Accounting entries debit equity share capital and credit the shareholders for the buyback amount. Compliance with conditions requires ensuring sufficient free reserves and a maximum buyback of 25% of paid-up capital. Calculations determine the number of shares and offer price within these limits.
This document discusses the capital market and secondary market in India. It defines the key terms like money market, capital market, primary market and secondary market. The secondary market refers to the market where securities are traded after the initial public offering. The document also describes the role of brokers and sub-brokers in trading, the trading process, settlement process, brokerage and other charges involved in trading. It provides details on various concepts related to stock exchanges like corporatization, demutualization and obligations of brokers.
Corporate actions are events initiated by publicly listed companies that may affect share prices and shareholders. Common examples include dividend payments, share splits, rights issues, and bonus issues. Corporate actions are typically undertaken to return profits to shareholders, affect share prices, raise extra money, or increase profits through restructuring. Shareholders can find information about corporate actions by contacting the relevant share registry or ANZ Securities NZ Scrip Settlements. Dividends are the most common corporate action, where companies may pay dividends annually, semi-annually, or quarterly. Share splits and consolidations adjust the number of shares and price to make shares more or less affordable, while maintaining the same total market value. Rights issues and bonus issues allow
A corporate action is an event initiated by a public company that affects the securities issued by the company. Some corporate actions like dividends or bond coupon payments have a direct financial impact on shareholders or bondholders, while others like a stock split may indirectly impact shareholders by increasing stock liquidity and price. Common corporate actions include stock splits, name changes, bond exchanges, bonus issues, conversions, dividend reinvestment plans, and partial or full bond calls.
This presentation will help u out in understanding the basics of corporate actions in investment banking and also a brief about Reference Data Management
The presentation slide is on stock valuation. We have tried to present the various techniques to stock valuation under which different methods are discussed with illustrations. Key concepts:
Zero Growth Model
Balance sheet Technique
Constant Growth Model
Two-stage growth Model
Feel Free to comment.
This document discusses the meaning, effects, objectives, and accounting treatment of buybacks of shares by a company. A buyback refers to a company purchasing its own shares from shareholders. This reduces share capital and returns part of the issued capital to shareholders. Objectives include increasing share value and EPS as well as using excess cash. Accounting entries debit equity share capital and credit the shareholders for the buyback amount. Compliance with conditions requires ensuring sufficient free reserves and a maximum buyback of 25% of paid-up capital. Calculations determine the number of shares and offer price within these limits.
This document discusses the capital market and secondary market in India. It defines the key terms like money market, capital market, primary market and secondary market. The secondary market refers to the market where securities are traded after the initial public offering. The document also describes the role of brokers and sub-brokers in trading, the trading process, settlement process, brokerage and other charges involved in trading. It provides details on various concepts related to stock exchanges like corporatization, demutualization and obligations of brokers.
This document discusses the valuation of bonds and shares. It defines intrinsic value as the present value of expected future cash flows from an asset, discounted by the required rate of return. Book value is the value of an asset on the balance sheet, calculated as cost minus accumulated depreciation. The document outlines different types of bonds such as irredeemable and redeemable bonds, and how to calculate the present value of bonds with annual and semi-annual interest payments using discounted cash flow formulas. An example calculation is provided.
The document discusses the roles and functions of stock exchanges and brokers. It begins by explaining that the primary market deals with new security issues, while the secondary market (i.e. stock exchange) allows existing securities to be traded. Brokers act as intermediaries between stock exchanges and investors, purchasing and selling securities on investors' behalf. Brokers must abide by regulatory codes to prevent manipulation and give accurate information. The document also notes some expectations for brokers to provide services like investment suggestions, quick order execution, price quotes, and incidental services to investors.
The document discusses various types of capital market investments including real estate, business enterprises, precious metals, and financial investments. It describes direct and indirect financial markets for making investments directly or through financial intermediaries like mutual funds. The key types of financial markets are the stock exchange, which is a marketplace for long-term investments in different market segments, and the money market for short-term investments in instruments like treasury bills. It provides an overview of the history and development of stock exchanges globally and in the subcontinent, including the major stock exchanges in Pakistan.
This document discusses dividend policy and the different types of dividends that can be distributed to shareholders. It outlines the key determinants of dividend policy, including transaction costs, taxation, liquidity, and growth opportunities. The document also describes different dividend policies like maintaining a constant dividend payout ratio or dividend rate. Finally, it examines stock dividends/bonus shares in more detail, noting the objectives, advantages, and disadvantages for both companies and investors.
Face Value is the original value of share issued mentioned in the share certificate at beginning when co. gets listed on stock exchange.
Face value does not change and stay constant unless stock is split.
Book Value is the Net worth of the Co.
Net worth = Total assets – Total liabilities.
Book value per Share equals : Net Worth / Total No. of O/s Shares
A company's book value is the amount that the shareholders would receive after all assets were liquidated and liabilities paid off.
Market Value is the current trading price of the stock quoted on exchange.
Market value is calculated by multiplying the total number of shares outstanding with the current market price of a share.
Book value and market value are both helpful in calculating whether a stock is fairly valued, overvalued or undervalued.
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The document discusses several theories of capital structure:
1) Net income approach assumes capitalization rates are constant as debt increases, making 100% debt optimal.
2) Net operating income approach finds no optimal structure as equity rates adjust to keep overall rates constant.
3) Traditional approach finds an optimal structure where costs initially fall then rise with more debt.
4) MM theory initially argues capital structure is irrelevant without taxes but debt provides tax shields with taxes.
5) Trade-off theory balances tax shields against costs of financial distress and agency, finding an optimal balance.
The Capital Asset Pricing Model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio. It describes the relationship between risk and expected return and is used to price risky securities and generate expected returns.
The document discusses various aspects of securities markets and financial markets. It describes the key components and participants in primary and secondary markets. The primary market, also called the new issue market, deals with the initial sale of new securities to investors. Major functions of the primary market include origination, underwriting, and distribution of new securities issues. Common methods to float new issues include public issues, rights issues, and private placements. The secondary market provides for the trading of previously-issued securities among investors.
Primary market vs secondary market (Made by Pankaj Bali) (SIES College Nerul)Pankaj Bali
The document provides an overview of the primary and secondary markets. The primary market allows companies to issue new securities to raise capital, such as through initial public offerings. The secondary market is where previously issued securities are traded, usually on a stock exchange. Some key differences are that the primary market deals with new issuances while the secondary market is for trading existing securities between investors.
1. The document discusses the growth and development of derivatives markets in India, including key milestones like SEBI permitting derivatives trading on Indian stock exchanges in 2000 and the introduction of various derivatives products over subsequent years.
2. It provides background on regulations governing derivatives trading in India and the objectives of regulation, including protecting investors and market integrity.
3. The document outlines the objectives of the study, which include understanding the Indian derivatives market scenario, analyzing whether derivatives have achieved their purpose, and suggesting methods based on observations. It discusses the scope and limitations of the study.
This document discusses the valuation and characteristics of stocks. It covers preferred stock, which is a hybrid security with characteristics of both common stock and bonds. Preferred stock pays fixed dividends, has priority over common stock in claims to assets and income, and may be cumulative or convertible. Common stock represents ownership in a company and entitles the owner to voting rights and residual claims to income and assets. The document discusses how to value preferred stock as a perpetuity and common stock using the dividend valuation model that incorporates growth. It also defines the expected rate of return for stocks.
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
This document provides an overview of the stock market in India. It discusses key terms like markets, shares, stock exchanges, brokers, demat accounts and how the stock market works. It describes the growth of the Indian stock market since the 1980s liberalization and details the major stock exchanges in India as well as the regulatory body SEBI. It also summarizes the trading mechanism, settlement cycles, market indexes, and how stock prices are determined.
Gordon Growth Model plays an important role in determining the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Stock market indices like the Sensex and Nifty provide a broad overview of market movements by representing thousands of listed companies. They help investors track overall trends, evaluate portfolio performance against the market, and understand how economic policies impact prices. The composition, weighting, and calculation methodology of different indices can vary in terms of number of constituent stocks, industries covered, and treatment of factors like market capitalization and liquidity.
This chapter discusses investing in stocks and the stock market. It covers topics such as how stocks are traded on exchanges and over-the-counter markets, methods for valuing stocks like the dividend discount and Gordon growth models, how the market sets stock prices, sources of error in valuations, important stock market indexes, investing in foreign stocks, and regulation of the stock market by the SEC.
This document summarizes various international financial market instruments used to raise funds, including equities, bonds, and short-term instruments. International equities, also called Euro-equities, are foreign portfolio equity investments that provide dividends but no voting rights. International bonds include foreign bonds denominated in the currency of the foreign country and Eurobonds denominated in a non-domestic currency. Short-term instruments include Euro notes, Euro commercial papers, and medium-term Euro notes that provide short-term funding over periods of 3 months to 7 years. These various instruments provide benefits to both issuers and investors in accessing international capital markets.
Investment management chapter 1 introduction to investmentHeng Leangpheng
This document provides an introduction to investment terminology and concepts. It defines key terms like finance, investment, and different types of financial assets. It also summarizes the major participants in the financial system including households, financial intermediaries like banks and mutual funds, and the markets they interact in such as primary and secondary markets. Different types of financial securities are also outlined including debt instruments and equity instruments.
The document provides an overview of the stock market, including:
1) It describes the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as the two major stock exchanges in India. The BSE is located in Mumbai and was established in 1875, while the NSE was established more recently and has the highest daily turnover.
2) It discusses important stock market indices for both exchanges, including the SENSEX for BSE and NIFTY for NSE, which track the performance of major companies listed on each exchange.
3) It explains some of the key participants in the stock market like brokers, registrars, depositories, and the regulatory body SEBI. It also
Companies typically pay dividends to shareholders in cash. Sometimes they supplement cash dividends with bonus shares or stock dividends. When paying cash dividends, companies must have sufficient cash reserves. If reserves are low, companies may need to borrow funds. Companies that follow a stable dividend policy must prepare cash budgets to ensure they can consistently pay dividends. Bonus shares increase the number of outstanding shares but do not affect total shareholder wealth. They provide tax benefits to shareholders and allow companies to conserve cash. A share split increases the number of outstanding shares by reducing the par value but does not change total shareholder equity or wealth.
Bonus shares are additional shares issued to existing shareholders without requiring additional payment. They are allotted by capitalizing a company's reserves and profits. Issuing bonus shares does not affect the total capital structure or shareholders' earnings, but increases the number of outstanding shares. Companies issue bonus shares to bring the share price to a more reasonable level, promote trading, and signal to shareholders that prospects have brightened. Regulations require bonus shares be issued from free reserves of at least 40% of increased paid up capital. While bonus shares have tax benefits for shareholders and signal future profits, they also increase capitalization pressure on companies to maintain earnings.
This document discusses the valuation of bonds and shares. It defines intrinsic value as the present value of expected future cash flows from an asset, discounted by the required rate of return. Book value is the value of an asset on the balance sheet, calculated as cost minus accumulated depreciation. The document outlines different types of bonds such as irredeemable and redeemable bonds, and how to calculate the present value of bonds with annual and semi-annual interest payments using discounted cash flow formulas. An example calculation is provided.
The document discusses the roles and functions of stock exchanges and brokers. It begins by explaining that the primary market deals with new security issues, while the secondary market (i.e. stock exchange) allows existing securities to be traded. Brokers act as intermediaries between stock exchanges and investors, purchasing and selling securities on investors' behalf. Brokers must abide by regulatory codes to prevent manipulation and give accurate information. The document also notes some expectations for brokers to provide services like investment suggestions, quick order execution, price quotes, and incidental services to investors.
The document discusses various types of capital market investments including real estate, business enterprises, precious metals, and financial investments. It describes direct and indirect financial markets for making investments directly or through financial intermediaries like mutual funds. The key types of financial markets are the stock exchange, which is a marketplace for long-term investments in different market segments, and the money market for short-term investments in instruments like treasury bills. It provides an overview of the history and development of stock exchanges globally and in the subcontinent, including the major stock exchanges in Pakistan.
This document discusses dividend policy and the different types of dividends that can be distributed to shareholders. It outlines the key determinants of dividend policy, including transaction costs, taxation, liquidity, and growth opportunities. The document also describes different dividend policies like maintaining a constant dividend payout ratio or dividend rate. Finally, it examines stock dividends/bonus shares in more detail, noting the objectives, advantages, and disadvantages for both companies and investors.
Face Value is the original value of share issued mentioned in the share certificate at beginning when co. gets listed on stock exchange.
Face value does not change and stay constant unless stock is split.
Book Value is the Net worth of the Co.
Net worth = Total assets – Total liabilities.
Book value per Share equals : Net Worth / Total No. of O/s Shares
A company's book value is the amount that the shareholders would receive after all assets were liquidated and liabilities paid off.
Market Value is the current trading price of the stock quoted on exchange.
Market value is calculated by multiplying the total number of shares outstanding with the current market price of a share.
Book value and market value are both helpful in calculating whether a stock is fairly valued, overvalued or undervalued.
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The document discusses several theories of capital structure:
1) Net income approach assumes capitalization rates are constant as debt increases, making 100% debt optimal.
2) Net operating income approach finds no optimal structure as equity rates adjust to keep overall rates constant.
3) Traditional approach finds an optimal structure where costs initially fall then rise with more debt.
4) MM theory initially argues capital structure is irrelevant without taxes but debt provides tax shields with taxes.
5) Trade-off theory balances tax shields against costs of financial distress and agency, finding an optimal balance.
The Capital Asset Pricing Model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio. It describes the relationship between risk and expected return and is used to price risky securities and generate expected returns.
The document discusses various aspects of securities markets and financial markets. It describes the key components and participants in primary and secondary markets. The primary market, also called the new issue market, deals with the initial sale of new securities to investors. Major functions of the primary market include origination, underwriting, and distribution of new securities issues. Common methods to float new issues include public issues, rights issues, and private placements. The secondary market provides for the trading of previously-issued securities among investors.
Primary market vs secondary market (Made by Pankaj Bali) (SIES College Nerul)Pankaj Bali
The document provides an overview of the primary and secondary markets. The primary market allows companies to issue new securities to raise capital, such as through initial public offerings. The secondary market is where previously issued securities are traded, usually on a stock exchange. Some key differences are that the primary market deals with new issuances while the secondary market is for trading existing securities between investors.
1. The document discusses the growth and development of derivatives markets in India, including key milestones like SEBI permitting derivatives trading on Indian stock exchanges in 2000 and the introduction of various derivatives products over subsequent years.
2. It provides background on regulations governing derivatives trading in India and the objectives of regulation, including protecting investors and market integrity.
3. The document outlines the objectives of the study, which include understanding the Indian derivatives market scenario, analyzing whether derivatives have achieved their purpose, and suggesting methods based on observations. It discusses the scope and limitations of the study.
This document discusses the valuation and characteristics of stocks. It covers preferred stock, which is a hybrid security with characteristics of both common stock and bonds. Preferred stock pays fixed dividends, has priority over common stock in claims to assets and income, and may be cumulative or convertible. Common stock represents ownership in a company and entitles the owner to voting rights and residual claims to income and assets. The document discusses how to value preferred stock as a perpetuity and common stock using the dividend valuation model that incorporates growth. It also defines the expected rate of return for stocks.
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
This document provides an overview of the stock market in India. It discusses key terms like markets, shares, stock exchanges, brokers, demat accounts and how the stock market works. It describes the growth of the Indian stock market since the 1980s liberalization and details the major stock exchanges in India as well as the regulatory body SEBI. It also summarizes the trading mechanism, settlement cycles, market indexes, and how stock prices are determined.
Gordon Growth Model plays an important role in determining the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Stock market indices like the Sensex and Nifty provide a broad overview of market movements by representing thousands of listed companies. They help investors track overall trends, evaluate portfolio performance against the market, and understand how economic policies impact prices. The composition, weighting, and calculation methodology of different indices can vary in terms of number of constituent stocks, industries covered, and treatment of factors like market capitalization and liquidity.
This chapter discusses investing in stocks and the stock market. It covers topics such as how stocks are traded on exchanges and over-the-counter markets, methods for valuing stocks like the dividend discount and Gordon growth models, how the market sets stock prices, sources of error in valuations, important stock market indexes, investing in foreign stocks, and regulation of the stock market by the SEC.
This document summarizes various international financial market instruments used to raise funds, including equities, bonds, and short-term instruments. International equities, also called Euro-equities, are foreign portfolio equity investments that provide dividends but no voting rights. International bonds include foreign bonds denominated in the currency of the foreign country and Eurobonds denominated in a non-domestic currency. Short-term instruments include Euro notes, Euro commercial papers, and medium-term Euro notes that provide short-term funding over periods of 3 months to 7 years. These various instruments provide benefits to both issuers and investors in accessing international capital markets.
Investment management chapter 1 introduction to investmentHeng Leangpheng
This document provides an introduction to investment terminology and concepts. It defines key terms like finance, investment, and different types of financial assets. It also summarizes the major participants in the financial system including households, financial intermediaries like banks and mutual funds, and the markets they interact in such as primary and secondary markets. Different types of financial securities are also outlined including debt instruments and equity instruments.
The document provides an overview of the stock market, including:
1) It describes the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as the two major stock exchanges in India. The BSE is located in Mumbai and was established in 1875, while the NSE was established more recently and has the highest daily turnover.
2) It discusses important stock market indices for both exchanges, including the SENSEX for BSE and NIFTY for NSE, which track the performance of major companies listed on each exchange.
3) It explains some of the key participants in the stock market like brokers, registrars, depositories, and the regulatory body SEBI. It also
Companies typically pay dividends to shareholders in cash. Sometimes they supplement cash dividends with bonus shares or stock dividends. When paying cash dividends, companies must have sufficient cash reserves. If reserves are low, companies may need to borrow funds. Companies that follow a stable dividend policy must prepare cash budgets to ensure they can consistently pay dividends. Bonus shares increase the number of outstanding shares but do not affect total shareholder wealth. They provide tax benefits to shareholders and allow companies to conserve cash. A share split increases the number of outstanding shares by reducing the par value but does not change total shareholder equity or wealth.
Bonus shares are additional shares issued to existing shareholders without requiring additional payment. They are allotted by capitalizing a company's reserves and profits. Issuing bonus shares does not affect the total capital structure or shareholders' earnings, but increases the number of outstanding shares. Companies issue bonus shares to bring the share price to a more reasonable level, promote trading, and signal to shareholders that prospects have brightened. Regulations require bonus shares be issued from free reserves of at least 40% of increased paid up capital. While bonus shares have tax benefits for shareholders and signal future profits, they also increase capitalization pressure on companies to maintain earnings.
This is a short presentation on Buyback and delisting backed by some instances.I hope this would help a lot in understanding the basic concept.In fact this phenomenon is lot more observed these days and it's important to know the basic facts behind this.
An equity share represents partial ownership in a company. Equity shareholders own voting rights and are last in line to receive assets if the company liquidates. There are various types of equity shares such as authorized, issued, subscribed, and paid-up shares. Bonus shares are additional shares given to existing shareholders without cost, usually to retain investors when a company cannot pay dividends. Sweat equity shares are given to employees/directors for intellectual property contributions. Debentures are a type of loan issued by companies with a fixed interest rate. There are various types of debentures based on security, convertibility, tenure and other factors. Forfeiture and surrender of shares can occur when shareholders do not pay required install
The document discusses various methods for issuing shares and setting dividend policies for both public and private companies. It provides details on rights issues, bonus issues, stock splits, and scrip dividends. It also discusses the relevance of dividend policy according to Modigliani and Miller's theory and practical influences on dividend policy, including signaling effects, liquidity preference, and taxation considerations.
This document provides an overview of corporate dividend policy. It discusses what dividends are, different types of dividends, factors that influence dividend policy decisions, and common dividend measurement approaches. Key points covered include that dividends are payments made to shareholders from corporate profits, factors like liquidity, growth opportunities, and legal requirements influence dividend policies, and policies generally aim for stable and regular dividend payouts.
1. The document discusses dividend policy and types of dividends such as cash dividends, stock dividends, and share repurchases.
2. Regularities in dividend policy are also examined, finding that firms tend to target long-run dividend payout ratios and mature firms with stable earnings usually pay higher dividends.
3. Several theories for why firms pay dividends are presented, including that dividends provide cash flow now versus future capital gains, signaling good private information to the market, and helping to monitor managers.
This document provides an overview of dividend policy presented by Team 'CURSORS of BUSINESS'. It defines dividend as a distribution of a company's earnings to shareholders, and dividend policy as guidelines used to decide how much earnings to pay out. The objectives of dividend policy include wealth maximization, maintaining funds for future prospects, providing a stable dividend rate, and maintaining control. Factors affecting policy include legal requirements, liquidity, repayment needs, expected returns, and stability of earnings. Forms of dividends include cash and stock dividends. The document also discusses stability of dividends, forms of stability, bonus shares, share splits, and share buybacks.
The document discusses dividend policy and its relationship to a firm's market value. It defines dividend policy as a board's decision on distributing residual earnings to shareholders. Different types of dividends are covered, including cash, stock, and liquidating dividends. The mechanics of declaring and paying cash dividends are explained. Modigliani and Miller's dividend irrelevance theorem and its assumptions are summarized, along with arguments for why dividends may matter in the real world due to factors like taxes, risk, and investor preferences.
Relationships Between Stock Split and Bonus Issue of Shares& their pros and consRajib Deb
A stock split is a corporate action that increases the number of the corporation's outstanding shares by dividing each share, which in turn diminishes its price. The stock's market capitalization, however, remains the same, just like the value of the Rs. 100 does not change if it is exchanged for two 50s. For example, with a 2-for-1 stock split, each stockholder receives an additional share for each share held, but the value of each share is reduced by half: two shares now equal the original value of one share before the split
This document provides information about corporate accounting, bonus shares, right shares, and compares the differences between bonus shares and right shares. It defines bonus shares as additional shares given to existing shareholders without cost based on current shareholding. Right shares are shares issued to existing shareholders for subscription. The document outlines the purpose of issuing bonus and right shares, such as rewarding investors and increasing liquidity. It also provides examples of companies that have issued right shares and bonus shares in 2016.
Sources of capital on the basis of ownership & Cost Of Borrowed Capital & Lev...RahulBisen13
Operating leverage measures how fixed costs affect operating income with changes in sales. It is calculated as contribution/EBIT and relates to assets. Financial leverage measures how fixed financial charges affect earnings, calculated as OP/PBT and relates to liabilities. Combined leverage considers both operating and financial leverage and their compounding effects on earnings. Leverage allows profits to rise with sales but also increases risk if sales decline.
1) The document provides an overview of key finance concepts related to equity, debt, and accounting. It defines terms like authorized shares, issued shares, outstanding shares, treasury stock, senior debt, subordinate debt, investment grade bonds, and retained earnings.
2) It explains how a company's revenue is distributed between debt holders and equity shareholders. Interest payments go to debt holders, taxes are paid, and any remaining earnings belong to equity shareholders.
3) The key components of shareholders' equity that must be reported on the balance sheet are paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income.
In this presentation, we discuss share repurchases and everything you need to know about them. We also present some insightful quotes from the world's best investors on the proper implementation of share repurchases in real-world scenarios.
Capitalization refers to the total amount of share capital and debt that a company has. There are three types: overcapitalization, which is more capital than needed; undercapitalization, which is less capital than needed; and normal capitalization. Overcapitalization reduces profitability and earnings, while undercapitalization increases them but can exploit consumers. Both situations are undesirable compared to normal capitalization, where a company has sufficient capital to fund operations and obligations.
The document discusses stock buybacks, also known as share repurchases, by companies. It provides details on the various methods and regulations around companies purchasing their own outstanding shares to reduce the total number of shares available on the market. Key points include that buybacks can increase share value for remaining shareholders and defend against hostile takeovers, but may also imply the company sees its stock as undervalued or lacks growth opportunities.
This document discusses stock valuation and provides examples. It begins by outlining learning goals around differentiating between debt and equity capital, understanding common and preferred stock characteristics, and using various stock valuation models. It then provides an example case study on Crocs' initial public offering in 2006, noting their growth and stock price increases. Key differences between debt and equity capital are outlined in a table, including aspects like voting rights, claims on income/assets, and tax treatment. Common and preferred stock are also differentiated in a table covering ownership, par value, voting rights, dividends and liquidation claims. An example is then shown of using the variable growth model to estimate the current value of a stock based on expected future dividend growth rates and
The document discusses capital structure, which refers to the composition and proportions of various capital sources like loans, reserves, shares, and bonds that make up a company's total capital (capitalization). It also discusses the impacts of leverage and different capital structure alternatives on earnings per share. Over-capitalization occurs when a company's earnings are insufficient to provide a fair return on its investments, while under-capitalization means a company's capital is less than what is required.
The document provides tips for job applicants on preparing resumes and following up with recruiters. It advises to ensure resumes are free of flaws, tailored to each job, and highlight relevant skills and keywords. Cover letters should specifically address why the applicant fits the role. When following up, timing is important - wait 1-2 weeks before contacting a recruiter, as responses can take longer for junior versus senior roles, and non-responses may mean the applicant is not the top candidate. Recruiters may also keep profiles on file without immediate openings.
Networking through friends and former colleagues is the best way to look for opportunities, rather than randomly searching online or sending unsolicited emails. It is important to have the right skills for the job and understand how your skills align with the company's needs and vision. Candidates should thoroughly review all social media profiles and ensure information is consistent across platforms, as many employers will research candidates online and unprofessional content could deter hiring.
Changing expectations after an interview reflects badly on the candidate and increases chances of rejection. Proper market research on prevailing rates for the role and location is important before an interview to avoid expressing unrealistic expectations during negotiations. Candidates should also follow up if not contacted after an interview, thank recruiters for their time, and stay connected on professional networks even if not selected in order to maintain positive relationships.
This document provides tips for phone interviews and in-person interactions. For phone interviews, candidates should keep an relaxed tone, take notes of their questions, and avoid multitasking. During interactions, candidates should prepare about themselves and the company, do research on the company, remain humble and polite without seeming nervous. Candidates should ask the right questions without dominating the conversation. For in-person interviews, candidates should make eye contact, arrive on time, dress neatly to convey seriousness, avoid unkempt appearance, and remain attentive with an appropriate energy level.
This document tell you information for how to analyze the quarter results of the company. Quarter results published by company , in which they showcase their performance to shareholders and analyst.
Different type of strategy followed by investor to invest in stocks market. basically 3 type of strategy generally followed which are Dividend Investing , Buy and Hold Investing and Trend Investing
An economic moat refers to a company's ability to maintain competitive advantages and protect its profits and market share from competitors over the long run. The document outlines several types of economic moats that can provide advantages, including high switching costs for customers, efficient scaling, low cost production, network effects from larger user bases, and strong intangible assets like patents and trademarks.
Factor Analysis Numerical and Solution , MBA , Analytics , Data Analysis , Marketing Analytics , Business Analytics , For Academics use only.
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The document summarizes tensions between the Reserve Bank of India (RBI) and the Indian government over several issues: interest rates, dividend payments, loan restructuring, regulation of public sector banks, corrective action for struggling banks, payments regulation, board appointments, liquidity support for non-banking financial companies, foreign exchange reserves, and more. Key points of contention have been the RBI's refusal to cut interest rates as desired by the government, lower than expected dividend payments from the RBI to the government, and the RBI's regulatory actions around struggling banks which put pressure on the government.
Contact me if you need any help regarding the Document
Email: krishna.khandelwal2010@yahoo.com
LinkedIn: https://www.linkedin.com/in/krishna-khandelwal-57656a85/
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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Stocks - Corporate Action
1. krishna.khandelwal2010@yahoo.com
Stocks - Corporate Actions
Corporate Action Explanation Why Company offers? Impact on fundamentals of the Company
Rights Issue Process of a company for raising
funds from its existing shareholder.
It usually offered at a discount to
the market price.
When company need funds, but they
don’t want to take more debt.
market capitalization remain same.
Bonus Share Free shares given to shareholders
of the company.
Do not involve cash outflow from the
company.
To increase the liquidity, number of
shares in circulation increases.
Post Bonus issue, share price is adjusted for
the increased capital.
Net worth does not change post bonus issue.
EPS will go down.
Stock Split Split in the face value of the share. To increase the number of share in
circulation and to make stocks appear
cheaper to retail investors.
market capitalization remain same.
Share buyback Process by which companies
repurchase it share from its
shareholder.
It can be at premium or discount
depending at market situation. But
generally it happens at premium.
It is one of the way of returning cash to
shareholder.
When company has huge cash in its
books of account.
Sometimes when the stock price is falling
sharply, companies announce a buyback
to signal a floor price for the stocks.
Show the confidence of the promoters
about their company.
It increases EPS and DPS of the company.
No impact on share price post buyback.
Dividends A dividend is normally paid by the
companies out of excess profit that
was generated during the year
When company has excess cash and have
no plan for an expansion.
Investor should be cautions if company
continue to avoid paying a dividend and
keeps on building cash without any signs
of investing for the future.
EPS decreases as RE decreases