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Capital Markets Course 3. III. Equity capital modification. Equity valuation Share characteristics: - Are parts of the share capital - Are equal parts.

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Presentation on theme: "Capital Markets Course 3. III. Equity capital modification. Equity valuation Share characteristics: - Are parts of the share capital - Are equal parts."— Presentation transcript:

1 Capital Markets Course 3

2 III. Equity capital modification. Equity valuation Share characteristics: - Are parts of the share capital - Are equal parts of the share capital - Cannot be split - Are negotiable instruments

3 III. Equity capital modification. Equity valuation Shares Types: Regarding the owner identification: - Registered shares - Non registered shares Regarding the owners rights: - Common shares - Preferred shares

4 III. Equity capital modification. Equity valuation Regarding the issuer: - Authorized shares - Not yet issued shares - On sale shares - Outstanding shares - Treasury shares

5 III. Equity capital modification. Equity valuation Shares issuing process: - On the company’s start up - During the company's life Subscription rights:

6 III. Equity capital modification. Equity valuation Dividend right: Dividend policy: - Residual policy - Rate policy - Stabilized policy Forms: - Annual dividend - Fixed dividend - Provisionally dividend - Share dividend

7 - Limited liability - Transferability - Dividends - Annual reports - Residual claim - Voting - Issued shares must be registered to the Trade Register  Main rights: - Voting - Dividend - Residual claim - Limited liability

8 - Dividends rate - Redemption clause - Convertibility clause - Cumulative clause - Participation clause - Variable rate - Return clause

9 Bibliography Anghelache, G., Piaţa de capital în context european, Editura Economică, Bucureşti, 2004 Bodie, Z., A. Kane, and A. J. Marcus, Essentials of Investments, 6th edition, McGraw Hill International Edition, 2007


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