EQUITY MARKETBy: 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 ACCURATE2) Transaction cost should be LOW3) Information Efficiency4) High Degree of Liquidity

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

Organisation of 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

Organisation of Equity Market

Organisation of Equity Market

- Method of Offering1) Fixed Price Method2) Private Placement3) Book Building4) 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 Shares1) Application forms with Cashier’s Order2) ESA3) Online application through Internet

ANY QUESTIONS?