...Summary | This term paper gives us a practical experience while passing through the theoretical understanding. The report is the result of our understanding about what are IPO and IPO listing procedure in Bangladesh. In the introduction, we have briefly discussed about IPO. What it is. In the next we have also explained the methodology regarding this report. Secondary data and information have been used in preparing this report. Then comes the Analysis part, where we have explained the listing procedure. We have divide listing procedure in two Parts according to their behavior, one is work before Consent and another in work after consent. In the whole listing procedure, the works are separable like work before IPO consent and work after IPO consent. Like all study, this report has also certain limitations which were in some cases unavoidable. In the end we have concluded with a short discussion of overall analysis. Table of Content Content | Page Number | Introduction | 4 | Methodology of the Study | 4 | Analysis | 5 | Conclusion | 9 | Bibliography | 10 | Introduction | Initial public offering (IPO), also referred to simply as a "public offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately owned companies looking to become publicly traded. In an IPO the issuer may obtain the assistance...
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...MERCHANT BANKING Prof Faye N Salins Merchant Bankers act as a link between corporate bodies who intend on raising funds and investors who are interested in investing in securities. It helps corporates establish new companies, expand, diversify, merge, commission projects etc. Apart from that, merchant banking was the necessity of banks themselves which were in need of non-fund based income so as to improve their profitability margins by all means in the changed economic scenario. Merchant Banking is known by different names in different places. In the USA, it is known as “Investment Banking”. In the UK it is known as “accepting and clearing houses”. Definitions of Merchant Banking 1) A Merchant Bank is a bank or financial institution that handles all the tasks related to incorporation of a company as well as marketing corporate and other securities. 2) Merchant Banking is an institution engaged in the business of issue management either by making arrangement regarding selling, buying or subscribing to securities or acting as manager, consultant, advisors or rending corporate advisory services in relation to issue management. 3) As per SEBI, Merchant Bank mostly provide advisory services, issue management, portfolio management and underwriting services, which require less capital but generate more income (non-interest income). 4) As per the Ministry of Finance; any person who is engaged in the...
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...Dear Sir, Here is the report that you have assigned us to prepare on summary of corporate finance. In the preparation of this report, I try to utilize the various related issues that are relevant for corporate finance. However, it is an educational and interesting report. I am very much delighted to be able to work on such a report and learned a lot. FROM, MD.ARIFUL ISLAM ID NO-103-14-0070. SECTION-A. REPORT ON CORPORATE FINANCE Cost of capital The cost of capital is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio of all the company's existing securities". It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. Cost of debt The cost of debt is computed by taking the rate on a risk free bond whose duration matches the term structure of the corporate debt, then adding a default premium. This default premium will rise as the amount of debt increases (since, all other things being equal, the risk rises as the amount of debt rises). Since in most cases debt expense is a deductible expense, the cost of debt is computed as an after tax cost to make it comparable with the cost of equity (earnings are after-tax as well). Thus, for profitable firms...
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...markets because many entrepreneurs look for requirements from the equity markets for many reasons. For this regard floating securities through IPO in the stock market is very analytical task and the whole procedure is the main focus of this report. OBJECTIVES OF THE STUDY The main objective of the report is to comprehensive study on Dhaka detailed procedure of IPO, the performance evaluation of IPO based on the year 2012 and to find out the problems inherent with this. The following are the other objectives of the study- * To identify the advantages and disadvantages of IPO Process. * To identify the requirements to be fulfilled by the companies for collecting capital through IPO. * To discuss the analyzing process of the Draft Prospectus submitted by the companies willing to be held for IPO. * To know the performance of the post IPO companies. * To know the relationship of the company having IPO with market index. METHODOLOGY OF THE STUDY * Type of research The task of business research is to generate accurate information for use in decision making. Business research is defined as the systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions. There are two types...
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...How to improve efficiency of organization Literature Review Tanshu Song BUS 551 University of La Verne The effective of an organization is concern by every managers. It was an important innovation in business management. Organizational effectiveness considers how well an organization performs business. In the present prospectus, the research will focus on effective management style and individuals behaviour which will impact on the efficiency of organization. The following literature reviews will attempt to show the information related to prospectus and demonstrate the analysis. In the research article by William Clark and Ray Wright (2009), they mentions the challenge which organizations will face in next several years. Increasing pressure to do more with fewer workers, growing demand for strategic new services, expected loss of legacy management skills and need for automated solutions. Then they provide a solution which can capture the knowledge of retiring workers and perform many tasks necessary to manage both legacy and distributed systems. This wide range of solutions that enable knowledge retention and automate the process workflow to provision and maintain IT services specifically. “By taking advantage of the wide range of solutions for automating management tasks, the agency can benefit from the ability to create automated, repeatable processes, reduce the need to replace retiring workers, improve ability to recruit new employees...
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...are required to design a trading strategy (including security selection), implement the strategy (execute the trades), and evaluate the performance of the portfolio. The trading platform for the project is the Virtual Stock Exchange at http://www.marketwatch.com/game/ (or www.marketwatch.com/game/patriotfinance2016). Password: patriotFinance2016. The Scenario You are beginning your new job with Patriot Investment Strategies, a mutual fund family managing approximately $50 billion in assets. Patriot has a variety of funds with various objectives. You and two or three of your associates, as a group, have been asked by management to create and manage a new fund based on your own ideas, benchmarking the performance of the fund against an existing index. You have learned that the other forty new associates at Patriot have received similar assignments, and that the performance of each fund will be evaluated by management six weeks after the inception of each fund. Management has indicated that, although, the fund’s total return as measured against the chosen benchmark is certainly important, due to the short time horizon, the novelty and effectiveness of your investment strategy may be even more important in making you stand-out as the next star money manager of the firm (and the recipient of the biggest year-end bonus). Trading Period: • For...
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...assessment of the corporate governance regulations and practices in Bangladesh. The assessment is measured against international norms and current practices as recognized by the OECD Guidelines on Corporate Governance. The report identifies critical areas where institutions, regulations, or other economic factors in the corporate sector could be strengthened to improve corporate governance (CG). As such, the authors identify strengths and weaknesses of legal requirements, regulations, and corporate practices. To identify the current strengths and weaknesses, the authors drew heavily on a review of laws and a survey of businesses organisations carried out by the research team as well as a series of interviews with key stakeholders. This analysis will serve as a basis on which further study can build. In fact, this report comprises the first stage of a three-stage project; Stage 2 will frame detailed recommendations to strengthen corporate governance in Bangladesh and Stage 3 will formulate implementation strategies. The Companies Act 1994 (the Act) defines the rights of both majority and minority shareholders. Shareholders are not intended to, and do not in...
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...Working report on “IPO consent and listing procedure in Bangladesh”, Capital Market, Finance Division, Grameenphone, Ltd. Prepared by: Md. Asad-uz-zaman Id# 0410094 An Internship Report Presented in Partial Fulfilment of the Requirements for the Degree Bachelor of Business Administration (BBA) Independent University, Bangladesh April 30, 2009 1 A WORKING REPORT ON THE CAPITAL MARKET, FINANCE DIVISION OF GRAMEENPHONE 2 Working report on “IPO consent and listing procedure in Bangladesh”, Capital Market, Finance Division, Grameenphone, Ltd. Prepared by: Md. Asad-uz-zaman Id# 0410094 Approved By: Rushdi Md Rezaur Razzaque Lecturer School of Business Independent University, Bangladesh 3 Letter of Transmittal Date: April 30, 2009 Rushdi Md Rezaur Razzaque Lecturer School of Business Independent University, Bangladesh Dear Sir, I have prepared my internship working report on “IPO consent and listing procedure in Bangladesh”, based on working experience of Capital Market division, Finance Department, Grameenphone Ltd, which I am submitting along with this letter. It was an energizing experience throughout the semester and preparing this report further enhanced my insight about how corporate level activities are being done and experience the real life situations which I have learnt throughout my internship (BBA-499A) in Grameenphone Ltd. This report will also reflect my working experience as an intern in Finance Division. As you will note...
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... as Underwriters c/o UBS Warburg LLC 677 Washington Blvd. Stamford, Connecticut 06901 Ladies and Gentlemen: Aphton Corporation, a Delaware corporation (the "Company"), proposes to issue and sell to the underwriters named in Schedule A annexed hereto (each, an "Underwriter" and collectively, the "Underwriters"), from time to time in the manner described below, an aggregate of 1,345,000 shares of common stock, $0.001 par value (the "Common Stock"), of the Company. Such shares are hereinafter collectively referred to as the "Shares." The Shares are described in the Prospectus referred to below. The Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder (collectively called the "Act"), with the Securities and Exchange Commission (the "Commission") a registration statement on Form S-3 (File No. 333-72964) including a prospectus, relating to the Shares and the offering thereof from time to time in accordance with Rule 415 under the Act, and the Company has filed such post-effective amendments thereto as may be required prior to any sale by the Company of Shares, which incorporates by reference documents which the Company has filed in accordance with the...
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...[pic] Bangladesh being a developing country, security market is very important source for the growth and development of the industrial section. SEC is working for a healthy economic capital, active administrated securities market. But BSEC it self is not smooth & efficient. There are few problems has been arise after it established. BSEC is working on some new projects and plans. SEC introduce an online database called EDGAR from which investors can access this and other information filed with the agency. In the same online system also takes tips and complaints from investors to help the BSEC track down violators of the securities laws. Apart from the macro policy of contributing to the development of the national economy through harmonization with monetary policy, securities policy dealing with securities houses and markets, generally pursue three broad objectives- Firstly, to improve the efficiency of securities market. Secondly, to ensure the stability and soundness of the financial system. Thirdly, to protect investors rights. In this paper we have shown the history of the organization, in the second section we have shown different functions done by the BSEC, in the third chapter shown types of stock exchange, registered under the BSEC. In the fourth and fifth section we have tried to discuss the different departments of the BSEC and effects of BSEC on the capital market. In the sixth section we have discussed registration and rules & regulation imposed...
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...Issue one Can the funds be raised from existing members or anyone else without a prospectus? Relevant law The ability of raising funds from investors is one of the most important functions of companies, furthermore, a significant objective of the Corporations Act (CA) is to encourage and regular those kind of investments. Usually, when a company want to offer securities, a disclosure documents (DD) must be issued simultaneously. The types of DD were given by s 705, and prospectus was including in. From s 706 “ ISSUE OFFERS THAT NEED DISCLOSURE”, we can find that, “ An offer of securities for issue needs disclosure to investors under this Part unless section 708 or 708AA says otherwise.” Obviously, to solve this issue we need to discuss if the Growth Ltd can fulfill the circumstances under s708 or 708AA. As there are too many subsections under s 708 and s 708AA, i will pick out sever subsections instead of copy all of them here. 从投资者筹集资金的能力是企业最重要的功能之一，此外，公司法（CA）一显著的目标是鼓励和定期的一种投资。通常，当一个公司希望提供证券，一个披露文件（DD）必须同时发出。 DD的类型由s705分别给予和招股说明书，包括研究。从s706“需要泄露问题提供了”，我们可以发现，“对于发行证券的要约需要向投资者披露在本部中，除部分708或708AA否则说，“很显然，要解决这个问题，我们需要讨论，如果公司成长可在S708或708AA履行情况。因为有书下708太多小节和S708AA，我将挑选出断绝小节，而不是拷贝他们都在这里。 Application In case one, the amount of fundraising is $m20, which can be considered as a large offer. Thus, the subsection (1) - (7) of s 708, Small scale offering, will not be applied here. For example, s 708 (1) b showed that the offer of ”$ 2 million ceiling”. For some special investors...
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...An Analysis On The Role of Bangladesh Securities and Exchange Commission Course Name : Financial Institution and Market Course Code: Fin-335 , Sec: 1 Prepared for Prof. Tanvir Ahmed Chowdhury Chairman, Department of Business Administration East West University Prepared by Holistic Heroes Submission Date: 25th March, 2014 Group Profile Department Of Business Administration Letter of Transmittal 25th March 2014 Prof. Tanvir Ahmed Chowdhury Chairman Department of Business Administration East West University Dear Sir, It gives us immense pleasure to present our term paper on the topic “ An Analysis on Bangladesh Securities and Exchange Commission, for the course Financial Institution and Market (FIN_335). By doing this paper we have learned a lot practical issues regarding BSEC , Capital Market, Stock Market, Bond Market etc and we think that will help us in our near future. We would like to thank you for your valuable guidance in every problem we had the precious time that you give us. We will be available for any further clarification required and requesting to accept our term paper. Thank you Sincerely All the Members of Holistic Heroes Syed Md. Fakruuddin Nahid Hasan Sayma Sultana Al Mumtahina Shuovy Asma Sultana Nusrat Sharmin Eva Table of content | Page no | Introduction | 6 | 1.0.0 Bangladesh Securities and Exchanges Commission | 7 | 1.2.0 Function of BSEC | 9 | 2.0.0 Capital...
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...Indian market overview: How stock market works? If you'd like to buy a share of stock in any publicly traded company you'll most likely need the services of a brokerage firm. Though it's possible to buy and sell shares of stock on your own, there are some practical and legal problems with this approach. The securities industry is highly regulated, so you can't just hang a shingle and start selling stocks to the general public, unless you're properly registered and licensed. A brokerage firm is a dealer of stocks and other securities that acts as your agent when you want to buy or sell stocks. Most trading of stocks happens on a stock exchange. These are special markets where buyers and sellers are brought together to buy and sell stocks. The best known stock exchanges are the Bombay Stock Exchange and the National Stock Exchange. The Bombay Stock Exchange is one of the largest stock exchanges in the world, listing over 4,500 companies. The BSE SENEX is the major stock index of the Bombay exchange, comparable to the DOW industrials in the US. The National Stock Exchange of India is also based in Mumbai (Mumbai used to be called Bombay) and regularly trades in volumes exceeding that of the Bombay Stock Exchange. The main stock index of the National Stock Exchange of India is the S&P CNX Nifty, or just Nifty for short. Apart from equities, the NSE also deals with trades of futures, debt and foreign currencies. When most people think of a stock exchange, they picture a scene of...
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...Security Analysis and Investment Management Unit-1 INVESTMENT * Investment means conversion of cash or money into a monetary assets or a claim on future money for a return. * Investment is the employment of funds on assets with the aim of earning income or capital appreciation. * Financial investment is the allocation of money to assets that are expected to yield some gain over a period of time. * In its broadest sense, on investment is a sacrifice of current money or other sources for future benefits. SPECULATION * Speculation means taking up the business risk in the hope of getting short term gain. * Speculation essentially involves buying and selling activities with the expectation of getting profit from the price fluctuations. * The speculator is more interested in the market action and its price movements. * The speculator is interested in getting abnormal return. Investment Vs. Speculation INVESTMENT | SPECULATION | * Time- long period * Risk- moderate * Return- moderate * Delivery of goods- yes * Decision- fundamental factors | * Time- very short period * Risk- high * Return- high * Delivery of goods- No * Decision- market behaviour | Financial Markets Maturity of Claim Seasoning of Claim Nature of Claim Timing of Delivery A Financial market is a market for creation and exchange of financial assets. Classification of Financial Markets Debt Market Equity Market Money Market Capital...
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...Abstract This paper provides an interim assessment of my company by using certain tools as applicable. The analysis will seek to address the following: what tools are available to provide analysis, identify the tools and how they are used, the benefits of each tool, concluding with an organization change agenda demonstrated by a Balance Score Card of the company. The following tools will be used in the analysis: Organizational Culture – “This is defined as a pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problem of external adaptation and internal integration”. This assumes the initial stage of identifying Organizational Capital We will examine the Nirvana group using the “ice berg” principle to demonstrate how the culture is made up. The “7-s Frame work”---A system used to garner a better understanding of an organization. This tool will be used simultaneously to: To conduct a SWOT analysis and identify the seven key elements existing in the company and to what benefit they serve. “Balanced Score Card”--- This will address the organization change agenda by identifying and measuring three criteria, namely; Customer Perspective, Alignment, and teamwork. Resort Demographics The Nirvana hotel group is Jamaican owned and operated, it comprises four resorts totalling 920 rooms “Nirvana Resorts’ primary target market is defined as the active, romance-expectant couple. The typical clientele are adults...
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