Stock Exchanges Flashcards
1
Q
Primary Markets
A
Marketing of new shares in a company to investors for the first time
2
Q
Secondary Markets
A
At some point want to dispose and often do this through stock exchange .
Dealing on secondary market
3
Q
Advantages of Listing
A
- Access to wider capital base
- Easy to put value our shares in relation to Acquisitions and Mergers
- Public Profile and Prestige
- Offer employees shares
- Liquidity in shares greater
4
Q
Disadvantages of Listing
A
- Regulation and Cost
- Market Conditions
- Investor Power : Shareholder pressure
5
Q
Listing Rules for LSE
A
- Status = Public Company
- Trading History = Three Years
- Market Capitlisation
Shares - £700,000
Bonds - £200,000 - Share ownership
25% to public
6
Q
Disclosure requirements
A
Any price sensitive info via primary info - provider
7
Q
Overseas conditions for listing for LSE
A
UK Listing Authority
Division of the FCA
8
Q
Alternative Investment Market
A
Junior market of LSE
for younger / newer companies
Conditions for entry - light
9
Q
Overseas AIM
A
LSE overseas AIM rules
application goes to LSE
10
Q
Two roles for AIM
A
- Nominated Advisor
Check + apply to LSE for AIM admission - Nominated Broker
Support liquidity
