Initial Public Offering Investopedia
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Defenses to Customer Claims Against Stockbrokers
DEFENSES TO CUSTOMER CLAIMS AGAINST STOCKBROKERS Elizabeth Hoop Fay, Esquire Morgan, Lewis & Bockius LLP Philadelphia Foster S. Goldman, Jr., Esquire Markel Schafer & Goldman, PC Pittsburgh DEFENSES TO CUSTOMER CLAIMS AGAINST STOCKBROKERS I. DEFENSES TO CHURNING, SUITABILITY AND UNAUTHORIZED TRADING CLAIMS A. The Elements of Causes of Action for Churning, Unsuitable Recommendations and Unauthorized Trading 1. Churning of a brokerage account occurs when a broker who exercises control over the trading engages in an excessive number of transactions in order to generate commissions. See, e.g., Costello v. Oppenheimer & Co., Inc., 711 F.2d 1361, 1368-69 (7th Cir. 1983). To prevail on a churning claim, the customer must prove three elements: (1) control of the account by the broker; (2) trading activity that is excessive in light of the customer’s investment objectives; and (3) that the broker acted with scienter, i.e., intent to defraud or reckless disregard of the customer’s interests. Craighead v. E.F. Hutton & Co., 899 F.2d 485, 489 (6th Cir. 1990). 2. While a churning claim is a challenge to the quantity of transactions, a suitability claim challenges the quality of the investments recommended by the broker. To prevail on a suitability claim, the customer generally must prove: (1) that the broker recommended securities that are unsuitable in light of the customer’s investment objectives; and (2) that the broker did so with intent to defraud or with reckless disregard for the client’s interests. E.g., Brown v. E.F. Hutton Group Inc., 991 F.2d 1020, 1031 (2d Cir. 1991). 3. -
Ladies of the Ticker
By George Robb During the late 19th century, a growing number of women were finding employ- ment in banking and insurance, but not on Wall Street. Probably no area of Amer- ican finance offered fewer job opportuni- ties to women than stock broking. In her 1863 survey, The Employments of Women, Virginia Penny, who was usually eager to promote new fields of employment for women, noted with approval that there were no women stockbrokers in the United States. Penny argued that “women could not very well conduct the busi- ness without having to mix promiscuously with men on the street, and stop and talk to them in the most public places; and the delicacy of woman would forbid that.” The radical feminist Victoria Woodhull did not let delicacy stand in her way when she and her sister opened a brokerage house near Wall Street in 1870, but she paid a heavy price for her audacity. The scandals which eventually drove Wood- hull out of business and out of the country cast a long shadow over other women’s careers as brokers. Histories of Wall Street rarely mention women brokers at all. They might note Victoria Woodhull’s distinction as the nation’s first female stockbroker, but they don’t discuss the subject again until they reach the 1960s. This neglect is unfortu- nate, as it has left generations of pioneering Wall Street women hidden from history. These extraordinary women struggled to establish themselves professionally and to overcome chauvinistic prejudice that a career in finance was unfeminine. Ladies When Mrs. M.E. -
The Operations of a Typical Stockbroker and an Issuing House
THE OPERATIONS OF A TYPICAL STOCKBROKER AND AN ISSUING HOUSE A PAPER PRESENTED BY MR. AZU ODITA GENERAL MANAGER/CEO, NETWORTH SECURITIES & FINANCE LIMITED (A MEMBER OF THE NIGERIAN STOCK EXCHANGE) LAGOS, NIGERIA Outline Who is a Stockbroker Requirements of a Stockbroker Services offered by a Stockbroker Relationship with other Stakeholders in the capital market Who is a Stockbroker A licensed dealing member of an Exchange Ø To deal in financial instruments available in the Money & Capital Markets uPrimary activity is in the capital market Dealing firms are the principal while the Authorized dealing clerks are the brokers/agents of the dealing firms Other features Ø Registered with CAC and SEC Ø Roles in the market depend on Capital bases, Expertise and Status of Registration u Broker = N40 Million u Dealer = N30 Million u Broker/Dealer = N70 Million – A broker transacts on behalf of customers only while a dealer transacts on behalf of his company Requirements of a Stockbroker ØIntegrity – His Word is his Bond ØInnovation in value-added services e.g. Margin Trading, Security Lending, REPO transactions ØKnow your Client (KYC) ØExcellent Analytical Skill ØFinancial Training ØFund Management & Administration ØFinancial Supermarket - gain advantage of size & distribution network ØOffshore Alliance. Services Offered by A Stockbroking Firm Not standardised Ø Differs from one organisation to another Examples Stockbroking New Issues Research & Portfolio Management Bond Trading Credit Analysis Stockbroking Receives and process transaction orders -
Semi Annual Report April 2008
FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008 FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2008 TABLE OF CONTENTS Federation of Euro-Asian Stock Exchanges 3 Deutsche Boerse 10 Garanti Asset Management 13 Is Investment 14 NASDAQ OMX 16 Tayburn Kurumsal 18 Finans Asset Management 20 Quartal FLife 21 Stock Exchange Profiles Abu Dhabi Securities Market 24 Amman Stock Exchange 28 Armenian Stock Exchange 32 Bahrain Stock Exchange 36 Baku Interbank Currency Exchange 40 Baku Stock Exchange 44 Banja Luka Stock Exchange 46 Belarusian Currency and Stock Exchange 50 Belgrade Stock Exchange 54 Bucharest Stock Exchange 58 Bulgarian Stock Exchange 62 Cairo and Alexandria Stock Exchanges 66 Georgian Stock Exchange 70 Iraq Stock Exchange 74 Istanbul Stock Exchange 78 Karachi Stock Exchange 82 Kazakhstan Stock Exchange 86 Kyrgyz Stock Exchange 90 Lahore Stock Exchange 94 Macedonian Stock Exchange 96 Moldovan Stock Exchange 100 Mongolian Stock Exchange 104 Montenegro Stock Exchange 108 Muscat Securities Market 112 Palestine Securities Exchange 116 Sarajevo Stock Exchange 120 State Commodity & Raw Materials Exchange of Turkmenistan 122 Tehran Stock Exchange 126 Tirana Stock Exchange 130 “Toshkent” Republican Stock Exchange 134 Ukrainian Stock Exchange 138 Zagreb Stock Exchange 142 Affiliate Member Profiles CDA Central Depository of Armenia 147 Central Registry Agency Inc. of Turkey 148 Central Securities Depository of Iran 149 Macedonian Central Securities Depository 150 Misr For Clearing, Settlement & Central Depository 151 Securities Depository Center (SDC) of Jordan 152 Takasbank - ISE Settlement and Custody Bank, Inc. 153 Tehran Securities Exchange Technology Management Company (TSETMC) 154 Member List 155 FEDERATION OF EURO-ASIAN STOCK EXCHANGES (FEAS) The Federation of Euro-Asian Stock Exchanges Semi Annual Report April 2008 is published by the Federation of Euro-Asian Stock I.M.K.B Building, Emirgan 34467 Istanbul, Turkey Exchanges. -
The Professional Obligations of Securities Brokers Under Federal Law: an Antidote for Bubbles?
Loyola University Chicago, School of Law LAW eCommons Faculty Publications & Other Works 2002 The rP ofessional Obligations of Securities Brokers Under Federal Law: An Antidote for Bubbles? Steven A. Ramirez Loyola University Chicago, School of Law, [email protected] Follow this and additional works at: http://lawecommons.luc.edu/facpubs Part of the Securities Law Commons Recommended Citation Ramirez, Steven, The rP ofessional Obligations of Securities Brokers Under Federal Law: An Antidote for Bubbles? 70 U. Cin. L. Rev. 527 (2002) This Article is brought to you for free and open access by LAW eCommons. It has been accepted for inclusion in Faculty Publications & Other Works by an authorized administrator of LAW eCommons. For more information, please contact [email protected]. THE PROFESSIONAL OBLIGATIONS OF SECURITIES BROKERS UNDER FEDERAL LAW: AN ANTIDOTE FOR BUBBLES? Steven A. Ramirez* I. INTRODUCTION In the wake of the stock market crash of 1929 and the ensuing Great Depression, President Franklin D. Roosevelt proposed legislation specifically designed to extend greater protection to the investing public and to elevate business practices within the securities brokerage industry.' This legislative initiative ultimately gave birth to the Securities Exchange Act of 1934 (the '34 Act).' The '34 Act represented the first large scale regulation of the nation's public securities markets. Up until that time, the securities brokerage industry4 had been left to regulate itself (through various private stock exchanges). This system of * Professor of Law, Washburn University School of Law. Professor William Rich caused me to write this Article by arranging a Faculty Scholarship Forum at Washburn University in the'Spring of 2001 and asking me to participate. -
Scrip Dividend in the Form of New Shares
Your responsibilities Principal register Hong Kong Overseas Branch register THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are Computershare Investor Services PLC Computershare Hong Kong Investor Services Limited in any doubt about this document or as to the action you should take, you should consult a Whether or not it is to your advantage to elect to receive new shares in lieu of a cash The Pavilions Rooms 1712-1716, 17th Floor stockbroker, solicitor, accountant or other appropriate independent professional adviser. dividend or to elect to receive payment in US dollars, sterling or Hong Kong dollars Bridgwater Road Hopewell Centre If you sold or transferred all or some of your ordinary shares on or before 15 May 2019, but those is a matter for individual decision by each shareholder. HSBC cannot accept any Bristol 183 Queen’s Road East shares are included in the number shown in box 1 on your form of election or entitlement advice for responsibility for your decision. BS99 6ZZ Hong Kong SAR the first interim dividend for 2019, you should, without delay, consult the stockbroker or other agent United Kingdom Telephone: +852 2862 8555 through whom the sale or transfer was effected for advice on the action you should take. Overseas shareholders Telephone: +44 (0) 370 702 0137 Email: [email protected] Email via website: Investor Centre: Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or No person receiving a copy of this document or the form of election in any jurisdiction www.investorcentre.co.uk/contactus www.investorcentre.com/hk Investor Centre: completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. -
Sec Formalizes Its Position on Pipe Transactions
June 2007 SEC FORMALIZES ITS POSITION ON PIPE TRANSACTIONS By Jeffrey T. Hartlin, Elizabeth A. Brower and Michael L. Zuppone Private investment in public equity offerings, labeled primary offering made on behalf of the issuer, in which “PIPEs” by market participants, have become a case the PIPE investors would be viewed as effectively permanent alternative for raising equity capital by public acting as statutory underwriters with respect to the companies in need of financing. Pursuant to informal resale of their shares to the public. guidance issued by the Staff of the Securities and BACKGROUND Exchange Commission (“SEC”) in the mid 1990s, PIPEs have been treated as completed private placements not PIPE transactions have two components. The first subject to integration with subsequent registered component involves the original issuance of the secondary offerings by selling securityholders. Under securities – i.e., the private placement of securities by a this guidance, PIPE investors have been able to have the public company to one or more accredited investors in shares issued in (or the shares underlying convertible reliance on the statutory private placement exemption securities issued in) the PIPE transaction registered for provided by Section 4(2) of the Securities Act and/or public resale into the trading market concurrently with private offering exemption provided by Regulation D or soon after the closing of the PIPE transaction. under the Securities Act. The securities sold in PIPEs Recently, as described below, the treatment of PIPEs may include common stock, straight or convertible investors in registered offerings as just selling preferred stock, convertible debt or a combination of securityholders, as opposed to statutory underwriters, these securities, as well as warrants that are issued to has been called into question in certain circumstances. -
A Guide to Selecting a Stockbroker Or Investment Adviser
Assessing Your Needs Before you seek the services of a professional stockbroker or investment adviser, take some ti me to evaluate your Selecting needs and expectati ons. This analysis will help you choose the right person a Stockbroker for the job. or • Defi ne Your Goals Securiti es Division Short- and long-term goals need to be The Securities Division of the Secretary of Investment identified. Determine the degree of risk State’s Office is responsible for regulating you are willing to assume to achieve the offer and sale of certain types of Adviser your fi nancial goals. investments known as securities. These may include many types of stocks, bonds, limited partnerships, viatical sett lement investment • Determine Your Net Worth contracts, some oil and gas investments, Figure out your assets and liabiliti es -- and other investment contracts. what you own and what you owe. Be sure Our major activities include registration to take into account any growing debts, of securities offerings, the licensing of likely tax increases, or personal or health stockbrokers and investment advisers, and crises which may strain fi nances. the investigati on of alleged violati ons of the securiti es laws. • Anticipate Life Changes Please call us with any questi ons at Consider any plans which might have an 601-359-1334. Mississippi residents may impact on your fi nances, such as making a also reach us by calling toll-free at career change, having children, paying school 888-236-6167. tuiti on or reti ring. Securities Division P.O. Box 136 Jackson, MS 39205 601-359-1334 www.sos.ms.gov Dear Fellow Mississippians: Selecting Your Adviser To select the best Be sure to look for certain characteristics and qualifications when choosing someone to manage financial adviser, you your investments. -
The Underpricing of Ipos on the Stock Exchange of Mauritius
The underpricing of IPOs on the stock exchange of Mauritius Article Accepted Version Agathee, U. S., Sannassee, R. V. and Brooks, C. (2012) The underpricing of IPOs on the stock exchange of Mauritius. Research in International Business and Finance, 26. pp. 281- 303. ISSN 0275-5319 doi: https://doi.org/10.1016/j.ribaf.2012.01.001 Available at http://centaur.reading.ac.uk/26244/ It is advisable to refer to the publisher’s version if you intend to cite from the work. See Guidance on citing . To link to this article DOI: http://dx.doi.org/10.1016/j.ribaf.2012.01.001 Publisher: Elsevier All outputs in CentAUR are protected by Intellectual Property Rights law, including copyright law. Copyright and IPR is retained by the creators or other copyright holders. Terms and conditions for use of this material are defined in the End User Agreement . www.reading.ac.uk/centaur CentAUR Central Archive at the University of Reading Reading’s research outputs online NOTICE: this is the author’s version of a work that was accepted for publication in Research in International Business and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Research in International Business and Finance, 26.2 (2012), DOI: 10.1016/j.ribaf.2012.01.001 € The Underpricing of IPOs on the Stock Exchange of Mauritius Ushad Subadar Agathee Department of Finance and Accounting, Faculty of Law and Management, University of Mauritius. -
The Role of Stockbrokers
The Role of Stockbrokers • Stockbrokers • Act as intermediaries between buyers and sellers of securities • Typically paid by commissions • Must be licensed by SEC and securities exchanges where they place orders • Client places order, stockbroker sends order to brokerage firms, who executes order on the exchanges where firm owns seats Types of Brokerage Firms • Full-Service Broker • Offers broad range of services and products • Provides research and investment advice • Examples: Merrill Lynch, A.G. Edwards • Premium Discount Broker • Low commissions • Limited research or investment advice • Examples: Charles Schwab Types of Brokerage Firms (cont’d) • Basic Discount Brokers • Main focus is executing trades electronically online • No research or investment advice • Commissions are at deep-discount Selecting a Stockbroker • Find someone who understands your investment goals • Consider the investing style and goals of your stockbroker • Be prepared to pay higher fees for advice and help from full-service brokers • Ask for referrals from friends or business associates • Beware of churning: increasing commissions by causing excessive trading of clients’ accounts Table 3.5 Major Full-Service, Premium Discount, and Basic Discount Brokers Types of Brokerage Accounts • Custodial Account: brokerage account for a minor that requires parent or guardian to handle transactions • Cash Account: brokerage account that can only make cash transactions • Margin Account: brokerage account in which the brokerage firms extends borrowing privileges • Wrap Account: -
Vermont Sense
VERMONT DOLLARS, VERMONT SENSE A Handbook for Investors, Businesses, Finance Professionals, and Everybody Else BY MICHAEL H. SHUMAN & GWENDOLYN HALLSMITH Foreword by STUART COMSTOCK-GAY A PROJECT OF POST CARBON INSTITUTE, VERMONTERS FOR A NEW ECONOMY, GLOBAL COMMUNITY INITIATIVES, THE PUBLIC BANKING INSTITUTE, AND THE FRESH SOUND FOUNDATION ii Copyright © 2015 by Post Carbon Institute. All rights reserved. No part of this book may be transmitted or Image credits: cover, upper left image © Erika Mitchell (via reproduced in any form by any means without permission in Shutterstock), other images as noted below; page 19, courtesy writing from the publisher. of City Market; page 23, courtesy of SunCommon; page 33, courtesy of Vermont Creamery; page 37, courtesy of Gwendolyn Interior design: Girl Friday Productions Hallsmith; page 50, courtesy of Real Pickles; page 53, courtesy Development and partnerships: Ken White of Opportunities Credit Union; page 71, courtesy of UVM Editing and production: Daniel Lerch Special Collections. ISBN-13: 978-0-9895995-3-5 Special thanks to John Burt and the Fresh Sound Foundation for ISBN-10: 0989599531 providing the funding for this handbook. Additional research and writing assistance was provided by Matt Napoli, now a graduate Post Carbon Institute of St. Michael’s College. 613 Fourth St., Suite 208 Santa Rosa, California 95404 Post Carbon Institute’s mission is to lead the transition to a more (707) 823-8700 resilient, equitable, and sustainable world by providing individ- uals and communities with the resources needed to understand www.postcarbon.org and respond to the interrelated economic, energy, and ecological www.resilience.org crises of the 21st century. -
Can European Unicorns Defend the High Valuations?
Norwegian School of Economics Bergen, Spring 2018 Can European Unicorns Defend the High Valuations? A challenge of the post-money valuation approach Kristian Hansen Lomheim & Ola Thune Øritsland Supervisor: Nataliya Gerasimova Master thesis in Financial Economics NORWEGIAN SCHOOL OF ECONOMICS This thesis was written as a part of the Master of Science in Economics and Business Administration at NHH. Please note that neither the institution nor the examiners are responsible − through the approval of this thesis − for the theories and methods used, or results and conclusions drawn in this work. 2 Abstract We apply a DCF-based R-model on a sample of 12 European unicorns to show that post- money valuations overstate the fair value of VC-backed companies. At best, the initial result suggests that the majority of the sample is overvalued whereas some firms are slightly undervalued. The median overvaluation of the sample is 25%. When we increase the conservative cost of capital estimates with one percentage point, all firms are overvalued with a median overvaluation of 75% in the sample. Our results indicate that many of the firms will need an abnormal operational improvement toward steady state in addition to significantly outperform the peer group and industry forecasts in order to generate cash flows that are sufficient to defend the post-money valuation. 4 Contents 1. INTRODUCTION .......................................................................................................................8 1.1 PURPOSE & BACKGROUND OF THE STUDY ................................................................................8