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By: Elson. Equity Market. Equity Market. Introduction to Equity Market. General Characteristics of Equity Represents Ownership Interest Permanent Source of Long-Term Capital No Maturity Date Ownership Risk Investment Returns Depends on Stock Market Prices. Introduction to Equity Market.
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By: Elson Equity Market
Introduction to Equity Market • General Characteristics of Equity • Represents Ownership Interest • Permanent Source of Long-Term Capital • No Maturity Date • Ownership Risk • Investment Returns Depends on Stock Market Prices
Introduction to Equity Market • Shareholders Entitlement • Residual Interest • Limited Liability • Control Via Voting Rights
Introduction to Equity Market • Definition of Market
Introduction to Equity Market • Characteristics of a Good Market 1) Information is TIMELY and ACCURATE 2) Transaction cost should be LOW 3) Information Efficiency 4) High Degree of Liquidity a) Marketability (Breadth) b) Price Continuity (Depth)
Organisation of Equity Market • Primary Market • Purpose: For companies to raise capital • Method of raising new Equity Capital • IPO • Private Placement • Rights Issue • Bonus Issue
Organisation of Equity Market • Method of Offering • Fixed Price Method • Private Placement • Book Building • Preferential Allotment
Organisation of Equity Market • Secondary Market • Purpose: Trading, Provides Liquidity to Shareholders • In Singapore • SGX Main Board • SGX Catalist • Differences between Exchange-Traded Marketand OTC Market
Applying for IPO Shares • Application forms with Cashier’s Order • ESA • Online application through Internet