Flashcards
CIMA F2
Cards in this deck (12)
- 1AIM ALTERNATIVE INVESTMENT MARKET LTFSECONDARY MARKET
MORE LOOSELY RELUGATED - 2EXAMPLE OF INTERMEDIARIES IN CAPITAL MARKET LTFBANKS
BUILDING SOCIETIES
INSURANCE COMPANIES
STOCK EXCHANGES
VENTURE CAP ORG
PENSION FUNDS - 3Role of Advisers in Capital Markets When raising finance on the capital markets LTFadopted from the London Stock Exchange Web Site
- 4I.P.O. SPONSOR LTFCoordinated the IPO and Advises the board
Investment Bank/Lg Accountancy firm
Coordinate drafting of prospectus
Project Manages the offer - 5I.P.O BOOKRUNNER LTFUnderwriter
Lg Investment Bank
Raises Capital
Determine Appropriate Offer Price - 6I.P.O REPORTING ACCOUNTANT LFT*Review and Report on the Co's Readiness for the IPO
Reports on:
*Financial Rept Procedures
*Financial Records
*Working Capital
Other Info - 7IPO LAWYER LTF*Make sure that all laws are followed during and after IPO
*Governed by EU Law - 8ADVANTAGE OF NEW STOCK MARKET LISTING LTF*ACCESS TO WIDER POOL OF FINANCE
*IMPROVED MARKETABILITY OF SHARES
*ENHANCED PUBLIC IMAGES
*ORIGINAL HOLDERS CAN REALIZE HOLDING
*EASIER TO SEEK GROWTH BY ACQUISITION
*ORIGINAL OWNERS SELLING HOLDINGS TO FINANCE OTHER PROJECTS - 9DISADVANTAGE OF A NEW STOCK MARKET LISTING LTF*Greater Public Regulation Accountability & Scrutiny
*More shareholders with exacting standards
More Costs - Underwriting Fees & Brokerage commissions - 103 Methods for an unquoted company to obtain a listing on the stock market LTF*IPO
*PLACING
*INTRODUCTION - 11Define Placing ( Stock IPO) lTF*Most of shares offered to a small number of investors
*Example - Pension Funds & Insurance Companies - 12ADVANTAGES/ DISADVANTAGES of a Placing instead of an IPO LTF*CHEAPER
*QUICKER
*INVOLVES LESS DISCLOSURE OF INFO
DISADVANTAGES:
*Shares may be unavailable for trading
*Institutional Shareholders may have control of comapny
Information
- Description
- E2 CIMA Flashcards on CIMA F2, created by beth auerbach on 24/11/2014.
- Created by
- beth auerbach · Nov 2014
- Updated
- Jan 17, 2017
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