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Prepared By : Khaled Hamalawi Supervised By Ibrahim Sammour.

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Presentation on theme: "Prepared By : Khaled Hamalawi Supervised By Ibrahim Sammour."— Presentation transcript:

1 Prepared By : Khaled Hamalawi Supervised By Ibrahim Sammour

2 stocks common stock. Advantages and disadvantages. Definitions. The reasons for the different market price of the real value of the shares. The use of regular source of equity financing (the advantages and disadvantages). Mechanisms to influence the stock prices. Preference stock. Advantages and disadvantages. Other types of stocks

3 Stocks and bonds are considered one of the most important sources of funding long-term use, where each of the companies and even governments in order to meet their financing needs when it is impossible to obtain from financial institutions. There are many types of stock, such as : (common stock, free, preferred, the Treasury, restricted and unrestricted) Definitions common stock : The title is a right of ownership of the company, and give the bearer the right to attend the annual General Assembly of the company, access to distribution if the company achieved a profit.

4 Advantages and disadvantages of common stock : - common stock holder has the "investor" certain rights "benefits" of the most important : Advantages : A - the right to vote in the association public. B - the right to transfer ownership by sale of stock. C - the right to profit if the Administration has decided to distribute. D - as well as enjoy the advantage of limited liability is a dividend share in the capital. disadvantages : For the investor, "shareholder" does not have the right to dividend, unless the company has made a profit or if the company, decides not profit distribution

5 Preferred stock : which gives the owner additional rights not enjoyed by the common stock, such as that the owner receives the primacy of shareholders to have access to the regular portion of the profits of the company, and the owner has priority in access to rights upon liquidation of the company by the holder of common stock, After the bond holders. Advantages : 1 - the company's non-legally binding distribution, and was entitled to a distribution by appropriate. 2 - do not have the right to vote such shares campaign. 3 - The issuance of more shares outstanding contribution in reducing the proportion of borrowed funds of funds owned. 4 - to plant the right to call of shares issued by the.

6 disadvantages : 1- relatively high cost, and because the distributions of preferred shares are not subject to tax.. 2- shareholders excellent exposed to risks. 3- have the right to non-payment of distributions to shareholders. Free stock which are distributed to shareholders by having the common stock, and shareholders are free to increase as the company's capital, and generated by the holding parts of the company's profits; and therefore the shareholders have the right to this increase in capital.

7 Treasury stock : the shares of the issuing company to re-purchase from the market through the Stock Exchange, the shares are not entitled to distributions or voting rights during the period of its ownership of the company Restricted stock: the words and registry for the registration and classification of the stock on the stock market, whether local or global, in particular through the actions of the registry, so as to give the Stock Exchange with the rights of the rights of this restriction non-restricted stock: it is the non-registered stock exchange, whether local or global bourses

8 coupon stock: which is the return on the stock, and this is a profit earned by the share of investment in the company. Characteristics of the stock : 1 - par value of shares as specified by law. 2 - equal to the value of the shares requires the equal rights of shareholders. 3 - be the responsibility of partners, depending on the value of stock 4 - the share of non-retail. 5 - of shares traded.

9 The rights of the stock or contributor :. The right to remain in the company 1-. 2- The right to vote in the General Assembly. 3- The right of control of the company 4- The right to bring a claim of responsibility on managers because of their mistakes in the administration. 5- The right to a share of profits and reserves, because the contributor provides its share capital in order to profit 6- priority subscription.. 7- The right to transfer shares. 8-The right of sharing the assets of company resolution

10 The reasons for the different market price of the real value of the stock : 1- speculation and manipulation in the price of the shares on the bourse 2- Non-availability of information on the performance of the company 3- inadequate disclosure of information by the company 4- analysis of information by the wrong investors, 5- the slow reaction of the market in terms of adjusting the share price, according to information received

11 Book Value : It is the accounting value of the asset in the books of the company. Market Value : Is the price that can be sold in the market by the original. Liquidation Value : Defined as the amount that can be obtained from the sale of an asset. The real value : Linked to the concept of the real value of financial securities and public equity, in particular, and shows the reasonable value or fair market value


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