Mind map
26. Process of Issuing Shares
Mind map: Process of issuing shares
Map content
26. Process of Issuing Shares
Prospectus : A document shared to the public providing details about the business
When a PLC issues share for the 1st time it is called "The INITIAL PUBLIC OFFERING"
PLC : Can sell shares to the others
- No permission required unlike PVT LTD
Function of Stock exchanges
- Set the price of shares
- Protection for investors
- Reflect the health of the economy
- Provide scope for speculation
SPECULATION : Speculators make short term gains by buying shares when prices are low and selling it when high
Yield : size of financial return
- (Dividend per share / Price per share ) * 100