Tutti Flashcards
Jitters
Preoccupazioni
To allay those jitters
Alleviare quelle preoccupazioni
Pepper with questions
Tempestare di domande
Outlays
Spese
To blow through
Superare
To ebb
Diminuire
Butt up against
Scontrarsi
Bonanza
Fortune, prosperity
Summer swoon
Svenimento estivo
Earning call
Conference call between the management of a public company,analysts, investors and the media to discuss the company’s financial results during a given reporting period.
Stocks and shares
Are certificates representing part ownership of a company
Due diligence report
Due diligence is an assessment of a business of an investment opportunity. It provides detailed information about financial operational legal and market position to help stakeholders make informed decisions. It is often compiled during M&A and IPO. It is used to give informations to potential stakeholders in private equity investments differently from prospectus which is made public, it is a private document which is not to be shared.
Prospectus
Is a formal legal document that companies or financial institutions use to provide essential information to potential investors about an investment offering. It is used to disclose detailed informations to help investors make informed decisions. It is used for public investment opportunities and it’s less detailed than due diligence reports. Mostly used in IPO’s and when a company wants to go public.
Investment bank underwrites stock issue
When a company wants to go public an investment bank underwrites a stock issue, essentially buying the shares of the company because it is confident in its ability to resell them in the market, if it is not able to do it the bank keeps the shares. Basically the bank is taking in risk hoping to resell the stocks at an higher price
Ordinary Vs preference shares
Ordinary shareholders collect dividends which are variable and paid at the discretion of the company’s board
Preference shareholders collect a fixed dividend amount often before any of the ordinary dividends are payed, also in case of liquidations preference shareholders are the first ones to get payed.
Order of liquidations
Owners of bonds and other debts
Owner of preference shares
Owners of ordinary shares
Going public passages
Deciding to go public
Deciding with an IB the price and amount of share
Contact indipendent accountants to do a due diligence report
The company generates a prospectus to publish for potential investors to make informed investment decisions
The company makes an IPO and the IB underwrites a stock issue
Over the counter markets
They are decentralised markets in which counterparties exchange financial instruments with one another without the need of a centralised exchange or a clearing house.
They have way less regulations and usually trade more exotic and less standardized financial products
Market makers
Market makers are financial institutions or individuals that provide liquidity to the financial markets by being prepared to buy and sell assets at a specific bid and ask price that they decide. They make their profit on the spread between bid and ask price.