Understanding Securities Markets and Corporate Finance

Securities Markets and Corporate Finance Operations

Financial assets are a means of maintaining wealth for the owner and a source of funding for those who issue them.

Classification:

  • Fixed income financial assets: These contribute to long-term flows, such as bonds or obligations.
  • Equity financial assets: These are uncertain, IQ-dependent flows that generate profits distributed by the company as dividends per share.

The Markets

Financial assets are traded in markets. The market is formed by all the markets

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Raising Capital: Venture Capital, Public Issues, and Rights Offerings

Raising Capital

Venture Capital

Venture Capital is private financing for relatively new businesses in exchange for stock. The ultimate goal is usually to take the company public, and the venture capitalist will benefit from the capital raised in the initial public offering (IPO).

Public Issue

A public issue is the creation and sale of securities that are intended to be traded on the public markets.

Steps in Issuing New Securities to the Public

  1. Management must obtain permission from the Board of Directors.
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Understanding the Stock Market and Financial Assets

Stock Market

The Stock Market is one where monetary resources are exchanged for financial assets.

Finance Companies (Private Finance) (Variable Debt)

And Company Limited Partnership.

The capital of companies is divided into shares, and each represents a title.

The company may eventually expand the capital that involves a new breed of actions, divided into the old shareholders who have preferential subscription rights to purchase new shares.

You can also issue bonds. Who gets a duty has the right to collect

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Financial Markets: Understanding Securities, Institutions, and Risk

A market is a place where buyers and sellers meet to exchange something of value. This exchange is mutually beneficial and involves non-coerced transactions.

What are Financial Markets?

A financial market is a market in which financial assets (securities), such as stocks and bonds, can be purchased or sold. Financial markets transfer funds from those who have excess funds to those who need funds.

  • Surplus units: Participants who receive more money than they spend, such as investors.
  • Deficit units: Participants
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Share Buyback: Legal Requirements and Process

Share Buyback: Legal Requirements and Process

The provisions for the buyback of shares were introduced in the Companies Act, 1956, effective October 31, 1998, and SEBI regulations, 1999.

  • Section 68 of the Companies Act, 2013 empowers a company to purchase its own shares and other specified securities.
  • Buyback refers to the purchase by the buyer of something already sold by the said buyer.
  • Buyback of shares means the purchase of its own shares already issued by the company.
  • It is a process by which a
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Business Financing: Sources and Types

Classification of Sources of Financing

A. According to Ownership:

  • Own Financing: Funds are owned by the company. For example, capital from partners.
  • Foreign Financing: Funds are not owned by the company. For example, bank loans.

B. According to the Source:

  • Internal Financing: Funds come from inside the company. For example, undistributed profits that are within the reserves.
  • External Financing: Funds come from outside the company. For example, credits extended by suppliers.

C. According to the Term:

  • Long-
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