equity market

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EQUITY MARKET By: Elson

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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. - PowerPoint PPT Presentation

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Page 1: Equity  Market

EQUITY MARKETBy: Elson

Page 2: Equity  Market

Equity Market

Page 3: 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

Page 4: Equity  Market

Introduction to Equity Market- Shareholders Entitlement

- Residual Interest- Limited Liability- Control Via Voting Rights

Page 5: Equity  Market

Introduction to Equity Market

- Definition of Market

Page 6: Equity  Market

Introduction to Equity Market- Characteristics of a Good Market

1) Information is TIMELY and ACCURATE2) Transaction cost should be LOW3) Information Efficiency4) High Degree of Liquidity

a) Marketability (Breadth)b) Price Continuity (Depth)

Page 7: Equity  Market

Organisation of Equity Market

Page 8: Equity  Market

Organisation of Equity Market

- Primary Market- Purpose: For companies to raise capital- Method of raising new Equity Capital

1) IPO2) Private Placement3) Rights Issue4) Bonus Issue

Page 9: Equity  Market

Organisation of Equity Market

Page 10: Equity  Market

Organisation of Equity Market

- Method of Offering1) Fixed Price Method2) Private Placement3) Book Building4) Preferential Allotment

Page 11: Equity  Market

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

Page 12: Equity  Market

Applying for IPO Shares1) Application forms with Cashier’s Order2) ESA3) Online application through Internet

Page 13: Equity  Market

ANY QUESTIONS?