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

Significance of cost of finance, Significance of Cost of Finance The...

Significance of Cost of Finance The cost of capital is Significance since of its application in the following areas as: i) Long-term investment decisions - In capital b

Circle the new equilibrium if there is an increase in price, a.  In the acc...

a.  In the accompanying diagram (which represents the market for chocolate candy bars), the initial equilibrium is at the intersection of S1 and D1. Circle the new equilibrium if t

State the determinants of return, State the Determinants of Return T...

State the Determinants of Return Three major determinants of the rate of return expected by investor are: (i) Time preference risk-free real rate. (ii) Expected rate o

Explain the framework put forward by the basel committee, Question 1: a...

Question 1: a) Explain the framework put forward by the Basel Committee to ensure that banks and supervisors give appropriate attention to the second (supervisory review) and

#toption, expression of underlying asset''s price at maturity T for lookbac...

expression of underlying asset''s price at maturity T for lookback option.

Computation of payback period method, Computation of Payback Period Method ...

Computation of Payback Period Method 1. Under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then the payback period (PB

Routine functions - finance function, Routine functions - Finance Function ...

Routine functions - Finance Function For the effective execution of the managerial finance functions, schedule functions have to be performed.  These decisions relate systems

Percentage of sales method, Percentage of Sales Method A) Express the...

Percentage of Sales Method A) Express the various balance sheet items varying along with sales as percentage of sales as assume for year 2002 stock and net fixed assets amoun

Tom and Martha Holt Case Study., Which of the following retirement plan alt...

Which of the following retirement plan alternatives would allow Tom the greatest deductible contribution while providing him with only a small cash flow commitment each year based

Capital market authority (cma), Capital Market Authority (CMA) Was est...

Capital Market Authority (CMA) Was established in 1990 with an Act of Parliament to assist, in creation of a conducive environment, for growth and development of capital marke

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