Players in primary market, Financial Management

PLAYERS IN THE PRIMARY MARKET

Some important players in the primary market are:

Merchant Bankers

When a company approaches the public for funds, merchant bankers manage the process of public issue. They perform in the capacity of issue managers, lead managers and co-managers.

Registrars

Next to merchant bankers are registrars to the issue who collect the applications, money and allocate shares to subscribers in consultation with the stock exchange. They issue allotment letters, share certificates, etc., within the schedules prescribed by the regulatory authority. Apart from these, they are also responsible for fulfilling the listing requirements and to see that the stocks are listed on the stock exchange.

Underwriters and Brokers

Underwriters subscribe to a certain amount of capital in the issue. They have to fill the gap, if any, due to the failure of subscription as planned. Brokers place the new issue in the market through their wide network and through sub-brokers.

Collecting and Coordinating Bankers

Collecting bankers collect the money in the form of cash, cheques, etc., for the subscriptions and the coordinating bankers correlate the collection information on subscriptions and convey the same to the underwriters and merchant bankers. A collecting banker may double up as coordinating bankers too.

Other Agencies

Other agencies like printers, advertisers and mailing agencies are also involved for providing publicity to the new issue.

Posted Date: 9/10/2012 5:36:00 AM | Location : United States







Related Discussions:- Players in primary market, Assignment Help, Ask Question on Players in primary market, Get Answer, Expert's Help, Players in primary market Discussions

Write discussion on Players in primary market
Your posts are moderated
Related Questions
A friend is looking for advice on one of his investments, KER. KER manufactures stationery supplies, the entity appointed a new Chairman in 2008 and since then has been executed an

Q. Degree of uncertainty in predicting cash balances? Probability approaches identify a degree of uncertainty in predicting cash balances and allow for a range of outcomes to


Air Manchester (AM) is a new airplane manufacturer. It is considering investing in a software package, e.g. SAS, which would make its daily operations more efficient

A bond investor is always exposed to credit risk. Credit risks can be classified into three types. They are: Default Risk Credit Spread Risk

Your family purchased a house three years ago. When you bought the house you financed it with a $160,000 mortgage with an 8.5% nominal interest rate (compounded monthly). The mortg

It is argued that VC & PE houses achieve superior returns through ruthlessly focussing management on short to medium term outcomes. In particular, parsimonious cash management is g

Q. Describe about Self-Employment Tax? Self-Employment Tax - Most individuals who are in business for themselves, like PARTNERS, SOLE PROPRIETORS or independent contractor ar

Q. Explain Inventory approach to cash management? This method analysis cash in the same way as engine inventory such that EOQ models may be employed. In such conditions cash

N egotiation You can also negotiate with the bidders based on the requirements as mentioned below. You can negotiate only with the lowest evaluated responsive and qualified