Define the term- origination, Finance Basics

Assignment Help:

Define the term- Origination

Origination offers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is really floated in the market. There are 2 aspects in these functions:

(i) Technical, Economic and Financial Analysis: A careful study of technical, economic and financial viability to ensure soundness of the project. This is a primary investigation undertaken by the sponsors of the issue.

(ii) Advisory Services: Advisory services that improve the quality of capital issues and ensure its success. Advisor services include:

Ø Type of issue

Ø Magnitude of issue

Ø Time of floating an issue

Ø Pricing of an issue- whether shares are to be issue at par or at premium

Ø Methods of issue.

Ø Technique of selling securities

Function of origination is carried out by merchant banker, who may be commercial banks and financial institutions, or private firms.

 


Related Discussions:- Define the term- origination

OPTION, DEFINE THE TERM OPTION IN DETAIL?

DEFINE THE TERM OPTION IN DETAIL?

Profit maximization - objectives of business entity, Profit maximization - ...

Profit maximization - Objectives of Business Entity Conventionally, this was considered to be the main goal of the firm. Profit maximization refers to getting the highest poss

Investment analysis, Ask questConsider an 8% coupon bond selling for $953.1...

Ask questConsider an 8% coupon bond selling for $953.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r

Define the term - finding a broker, Define the term - Finding a Broker ...

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

Shareholders'' wealth maximization, Shareholders' wealth maximization - Obj...

Shareholders' wealth maximization - Objectives of Business Entity Shareholders' wealth maximization refers to maximization of the total present value of each decision made in

Cbk - monetary policy, CBK - Monetary Policy The money supply in the e...

CBK - Monetary Policy The money supply in the economy has a main effect on both the rate of inflation and the level of economic activity. The level of money supply is controll

Calculate internal rate of return, 1. Each project has RM 10,000, and the c...

1. Each project has RM 10,000, and the cost of capital for each project is 12%. The projects' expected cash flows are as follows: Expected Net Cash Flows YEAR

Solutions - relationship between auditors and shareholders, Solutions to th...

Solutions to the conflict - Relationship between Auditors and Shareholders 1. Firing The auditors may be detached from office at the AGM via the shareholders. 2. Lega

Venture capital, Venture Capital Venture capital is a form of investme...

Venture Capital Venture capital is a form of investment in new small risky enterprises utilized to get them started via specialists called venture capitalists. Venture capital

Calculate the percentage of equity of firm sells, Consider an economy with ...

Consider an economy with three dates {t=0, 1, 2}. A firm has assets in place that generate an output (profit) of either 40 in state L or 160 in state H at t=2. Bothe states equally

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd