Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Benefits of Issue of Securities
Initial Public Offering (IPO) of securities gives instant recognition and visibility to the firm, helps to attract and retain skilled personnel, increases the value of existing shareholders and tapping a broad universe of investors. IPO issues also offers various other benefits to the companies. They are:
Access to Capital: Small companies usually offer securities in the market when they are planning for expansion.Access to Additional Funds in Future: Companies who have already made public offerings can generate more funds through additional stock offerings. They can also obtain loans from traditional sources of finance at much better terms depending on their performance, increasing visibility and reputation, and rise in market value of equity.
Debt Swap: Companies can utilize a favorable market scenario, and issue equity securities at higher end of company valuation to pay off expensive debts. By doing so, companies can reduce the debt burden and maintain balance in the debt-equity ratio.Drive for Professional Conduct: After the issue and listing of securities, companies are required to follow regular disclosure requirements like publication of results and performance of company as per Accounting Standards. These improve corporate governance practices, professionalism and regulatory awareness, and bring more transparency in organizational activity.
Flexibility in Deals: Mergers, takeovers and buy-outs can be carried out post a public offering. Not only does an IPO provide the necessary funds for an acquisition, but also acts like a collateral security as the stocks of a listed company are liquid instruments and tradable in recognized stock exchanges.
Historical Inflation and Stock Value Experience The experimental evidence denies the status of stocks as a good hedge against inflation. A study conducted by Ibbotson and Brins
What is the present value of an annuity that makes a quarterly payment of $37,110 for 11 years, assuming an annual yield to maturity of 5%?
Brixton Products is considering the purchase of a new $520,000 computer-based entry order system. The cost of the system will be depreciated on a straight-line basis over its five
The payment that the issuer makes to the bondholder can be in any currency. The contract at the time of bond issue between the issuer and the investor can specify
Under what circumstances would market to book value ratios be misleading? Explain. The Market to Book ratio is helpful, but it is just only a rough approximation of how liquid
Q. Nature of the business? The working capital requirement of the firm basic depends upon the nature of the business. public utility undertaking like the water supply and rai
a) IPod -Line / Mass production is most suitable given that Apple can sell the standardised product to mass markets across the world. Only small variations to the production proces
Assume that you have been consistently impressed by David and Tom Gardner of The Motley Fool since you first heard of their rather improbable rise to prominence in financial circ
How to calculate payment of expenses: SAIB, LLC is a US company that provides cell phone and internet service; it seeks to expand its international operations into Kyrgyzstan.
Weighted average cost of capital of Firm: Use the following information to answer the questions. Security Beta Expected retur
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd