Essays on Debentures

Primary and Secondary Market

Primary markets are linked to the issuance of new securities that are apportioned and issues by the companies to people, who have subscribed to the issue. The securities in the primary market are issued to the public via initial public offerings (IPOs) by the public limited firms. The IOPs can be shares or the debentures. The IPOs are associated with the issuance of securities made by the company, which is limited to public on direct basis. On the other hand, in relation to bonds investors buy them directly from the firm. The shares or debentures are issued at the ...

Question 1

Stock flipping refers to buying stocks during an initial public offer with the intention of reselling them immediately at a profit. It is a short term investment strategy that takes advantage of existence of liquid markets. Institutional investors engage more in stock flipping than individual investors since they have more shares availed to them at the offer price .

Investment banks encourage stock flipping for various reasons. If an IPO is allocated only to long term investors, there will be no trade in the secondary market. The stocks will be in the public but they will be illiquid since nobody is selling. ...

Interest rates are the monetary compensation or the cost of borrowing given to the lender(s) or supplier(s) of funds by the borrower(s) or demander(s) of funds or loans (CMU, 2010). The terms required returns and interest rates are similar in that the lender gets compensated for the funds they provide to the borrower. However, required returns are used when referring to equity instruments (investments) like common stock, and the interest rate is used when referring to debt instruments like bonds or bank loans. There are several factors that influence interest rates. They include inflation, risk ...

The addition of a new shareholder in farming solutions limited has taken a different change. It is so since Jed is now a minority shareholder who opens his own business just after being a shareholder. The objective is to understand about duties of directors like henry, the law on the protection of the minority shareholders, in this case Jed. The different types of meetings held once a company has been incorporated are also of interest. It also aims to establish the rights of shareholders and debenture holders and the effect of the liquidation process on employees, directors, creditors, and everyone else involved in the ...

History and background of the Retailer

Amazon.com was set up in 1994. Jeff Bezos takes the credit for the establishment of the company with its base in Seattle. The company began as a bookseller over the internet. As time went by, Amazon grew in size and eventual market share making it one of the largest e-commerce business enterprises. The company eliminated the need for its clients to travel to actual bookstores and purchase reading material. They could do this over the internet. After establishment in 1994, the company made its first online sale in May 1995.

Corporate Mission Statement

The corporate mission of the company is to be the ...

Viability Report on JV

There lies a distinguishing characteristic of Multinational Corporation (MNC) in contrast with a collection of independent national firms dealing at arm’s length is, its ability to move money to its affiliates through internal transfer mechanism. In multinational financial system there is transfer of goods, services, technology and capital. In the interest of facilitating stronger sustainable profitability and growth, decisions on resource allocation in organizations require a systematic, analytical and though approach as well as sound judgement. Project and investment appraisals and capital budgeting which involves assessing the financial feasibility of a report should use Discounted Cash Flow(DCF) analysis as a supporting ...

Factors that Determine Stock Market of Corporations

Abstract In this paper, I look into capital markets in general describing them as markets in which financial securities are traded. The capital market instruments differ from money markets in that they take longer to mature, a year or more, as opposed to money markets (Martin, 2013). They are also a source of income for the investors who earn when the stocks rise in values. I will also look into services offered by capital (krani, 2010). Most importantly however will be a cross-sectional study on financial market trends in the stock markets and the capital market of corporate companies. Under ...

Task

Compare the corporate form of organization with the sole proprietorship and the partnership.

Describe the principles dealing with ways of creating value and economic efficiency

The major principles include comparative advantage and absolute advantage. Comparative advantage is the ability of a country to produce a particular commodity in a more efficient way than other countries. Countries that have modern machinery are likely to produce machine intensive products than other countries. Absolute advantage is the ability of a county to be able to produce a particular commodity that other countries do not produce. For instance, a country that is endowed with a unique mineral that is not produced by other countries can be said to have absolute advantage ...

The following are some of the rules and regulation that applies to Kuwait application of debentures to the investors; the first requirement is that it must be licensed by the Kuwait Ministry of Commerce and Industry. The Ministries has a responsibility to supervise the issuing of the debenture by the Central bank of Kuwait. The Commercials Companies Law requires that company capital subscribed be paid in full and does not allow issuing of debentures that more than the capital paid up. The holder must pass the resolution authorized by the Kuwait issuers. Once the debenture holders are issued with the ...

Raising Capital in the UK Economy

Businesses have several financing options for their capital projects. One of the financing options is bank borrowing. There are several banks in the UK market and a business does its analysis to get the best interest rates in the market. A business may approach a bank loan to purchase assets such as machinery. With this kind of business financing, the company may have to give assets as collateral to the bank to act as security. There are two types of bank loans that offer that is secured loans and unsecured loans. The advantage of secured loans is that the interest rate ...