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Mapa mental

26. Process of Issuing Shares

Thivyatharani Thayaratnam Commerce IGCSE Edexcel 2025 Inglês

Mind map on process of issuing shares: prospectus, PLC, stock exchanges, speculation and yield

Mind map: Process of issuing shares

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26. Process of Issuing Shares

  1. Prospectus : A document shared to the public providing details about the business

  2. When a PLC issues share for the 1st time it is called "The INITIAL PUBLIC OFFERING"

  3. PLC : Can sell shares to the others

    • No permission required unlike PVT LTD
  4. Function of Stock exchanges

    • Set the price of shares
    • Protection for investors
    • Reflect the health of the economy
    • Provide scope for speculation
  5. SPECULATION : Speculators make short term gains by buying shares when prices are low and selling it when high

  6. Yield : size of financial return

    • (Dividend per share / Price per share ) * 100

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Shares
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shares
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