By: Elson. Equity Market Introduction to Equity Market -General Characteristics of Equity -Represents Ownership Interest -Permanent Source of Long-Term.

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Presentation transcript:

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 1)IPO 2)Private Placement 3)Rights Issue 4)Bonus Issue

Organisation of Equity Market

-Method of Offering 1)Fixed Price Method 2)Private Placement 3)Book Building 4)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 Market and OTC Market

Applying for IPO Shares 1)Application forms with Cashier’s Order 2)ESA 3)Online application through Internet