Underwriting - stock market, Finance Basics

Underwriting - Stock Market

1. This is the supposition of risk relating unsubscribed shares

2. When new shares are issued, they might be beneath -written or unsubscribed. A merchant banker agrees, beneath a commission to take up any type of shares not bought through the public.

3. They consequently ensure for such all new issues are successful

4. Underwriters are very important in pry markets and play the following roles:

5. Advice firms on more appropriate issue price

6. Give surety that shares are fully subscribed via receiving up all unsubscribed shares

7. Advice the firms on there to source funds to finance floatation costs.

Posted Date: 2/1/2013 1:02:54 AM | Location : United States







Related Discussions:- Underwriting - stock market, Assignment Help, Ask Question on Underwriting - stock market, Get Answer, Expert's Help, Underwriting - stock market Discussions

Write discussion on Underwriting - stock market
Your posts are moderated
Related Questions
Define the term - Finding a Broker Selection of a broker depends largely on the kind of services rendered by a specific broker as well as upon the type of transaction that a

Below is information provided for two companies, A and B.  Assuming a risk-free rate of 2.5%, an effective tax rate of 40%, and a market risk premium of 5.5%, estimate th

Investment Analysis Any type of company will invest finance for the sake of deriving a return that is useful for four main purposes as: 1. To reward the owners or shareholder

How would you explain the value of financial planning to friends or family? Which topics will you discuss with children in your life? Which topics do you feel are most imp

Capital Asset Pricing Model (CAPM) CAPM is a methods that is used to establish the required rate of return of an investment provided a particular level of risk.  According to

Investigate a recent company merger or take-over and: i)  Critically evaluate the means by which managers may determine the bid price in such acquisitions. (You should use the b

Inventories turnover 8 times 4 times Receivable days 63 days 40 days

Example of Replacement of Assets Estate Developers purchased a machine five years ago on a cost of £7,500.  The machine had a probable economic life of 15 years at the moment

Bill Smith, a manager of a restaurant/bar in Los Angele, is in the 25% marginal tax bracket and pays additional 5% in taxes to the state of California. Bill has 20,000 invested in

Explain about commercial banks in depository institutions. Commercial banks: Commercial banks accept deposits or liabilities to create loans or assets and to buy governme