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Posts Tagged ‘securities’

Initial Public Offering Basics, Benefits & Requirements

September 29th, 2014 Comments off

An Initial Public Offering (IPO) is a vehicle for a privately held company to go public. It usually ends up as seminal event in the company’s history. The company starts off by issuing a specific number of share certificates at a specific price to investors. Once it gets listed on a specific stock market, the company’s shares can be bought and sold by individual investors.

In order to get to this point where the company gets listed, there are a huge number of requirements that the company has to fulfill. There are compliance issues, filings to regulatory bodies, and disclosures of the company’s financial condition. Once fulfilled, the benefits of a well subscribed IPO are massive and the company gets a big boost, in terms of cash and reputation.

The sudden influx of capital with no strings attached helps keep the company’s current business on track, and puts its growth plans on a high-speed track. Liquidity problems which can derail a company’s existence disappear, and lenders can be paid off in full. The business also gets a boost from all the hype over the IPO and customers and business partners will start looking at the company with greater trust.

The first concrete step towards an IPO is for the company to file a registration statement with the SEC. This statement, along with a prospectus for the IPO, tells the company’s entire story. It helps investors (and the SEC) decide whether the company is a good horse to bet on.

This process can be significantly eased with the help of the underwriters. It is their job to assist the company with the public offering. They’ll help the company move from being a private concern to a public company whose executives need to answer to the Board and every shareholder. But most importantly, they make a judgment about the IPO share price and the number of shares to be issued, and other aspects such as the timing and the market.

There are significant post-IPO reporting and disclosure requirements for public companies. Publishing quarterly financial results and holding an annual shareholder meeting are two such examples. One big area where change is almost inevitable after an IPO is the management. Every company that goes public ends up hiring new executives who have experience in managing large public companies.

The success of an IPO is mainly based on how sound the finances, growth prospects and revenue model, not to mention the viability of the sector the company belongs to. But many IPOs have crashed and burned even with all this. Reasons why an IPO might fail include bad timing, over-pricing and/or too big a size, and choosing the wrong market.

In Canada, for example, IPOs tend to be smaller than the ones in the US. They are also slightly under-priced because the market doesn’t have the same strong appetite for risk. European IPOs have to look at a lot more factors and have a smaller window, since problems in any EU member nation can affect markets in all the other nations.

Before 2001, when dotcoms were still in vogue, anyone with a website could file for an Initial Public Offering and watch the millions piling up as the markets kept going up. What investors want now is a safe company with lots of assets to its name and long term growth prospects. For any business that can traverse this long road to IPO success, there’s a huge reward waiting at the other end.

In order to grow and expand, many companies will go through the IPO How process and make an Initial Public Offering (IPO) to the general public. A new IPO Prospectus valuation is usually made, and Canadian IPOs are becoming more common nowadays.

Reliance Money Offers Unlimited Trade For Flat Fee

April 29th, 2014 Comments off

Reliance Money, under the brand name, provides a single window, enabling customers to access, amongst others, Equity & Commodity Derivatives, Portfolio Management Services, Wealth Management Services, Investment Banking, IPO’s, Mutual Funds, Life & General Insurance, Money Changing, Money Transfer, and Gold Coins Reliance Securities Limited is a broking and distribution company offering Equity and Derivative trading, distribution of Mutual Fund and IPOs, Portfolio Management and Investment Banking.

Reliance Capital is a part of the Reliance – Anil Dhirubhai Ambani Group. Reliance Securities Limited is a group company of Reliance Capital, one of India’s leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies in terms of net worth.

Reliance Money’s new product offers unlimited trading and margin trading to new customers for Rs. 6000. This product is aimed at aggressive investors and regular traders, valid for three months. First product in the industry offering unlimited trading option on flat fee model customers to get range of value adds including fee waiver on account opening, Shares As Collateral facility, SuperTrade Subscription and Trading calls on trade with new product.

Reliance Money, one of the largest distribution and broking brands in the country, launched a new product for customers that allow unlimited equity trade for a fixed fee. The event was held in Jaipur on 9th Feb 2010. The new product, which is being offered by Reliance Securities Limited (RSL), was unveiled by Mr. Vikrant Gugnani, Executive Director, and Kapil Bali, CEO, Retail Broking, RSL, at a press conference.

Mr. Gugnani said that the product was the first of its kind product available in the Indian broking industry. The new offer allows all traders and investors to cap their brokerage expense while offering them unlimited trade option through their platform. This is also in line with their strategy to offer competitive pricing and convenient brokerage options for their investors. This new product – Trade Unlimited -, priced at Rs. 6000 for three months, offers unlimited delivery trading and margin trading turnover and is available to new customers.

As an incentive for availing this product, the company would be waiving account opening charges; offer shares as collateral facility – which allows client to trade on intraday and F&O by pledging shares instead of having to provide cash margins; offer SuperTrade Subscription , a superfast execution platform for 90 days, and Trading calls on its platform.

Mr Bali spoke on this occasion saying that the new product is aimed to provide huge price advantage – upto 25-50 per cent of brokerage to aggressive investors and traders who easily end up spending much more on other platforms. According to in-house limited research done by the company – Regular traders doing more than Rs. 5 lakh a day or over Rs. 1 crore a month in margin/intraday/F&O at a brokerage of 0.03% could be spending Rs. 3300 a month or more on brokerage.

The new account would be activated between 10-15 days. The 90 day count will begin either from the day the client starts his first trading; or the 10th day after account activation in case no trade is done before that. Once the 90 day period is over the customers can choose from the existing range of limit cards depending on their trade volume and value.

Find out more about Reliance Money & visit Reliance Securities to know more about the products & services.

Dai-Ichi Securities: Gold IS Only Currency To Buy.

November 22nd, 2013 Comments off

“Dai-Ichi Securities”: The euro’s troubles will begin to afflict other paper currencies sooner rather than later. “Dai-Ichi Securities” : Greece’s troubles have sent the euro into a tailspin against other currencies including the US dollar, the Swiss franc and it has even weakened against the British Pound. This, suggest analysts at Asia-based “Dai-Ichi Securities”, means that gold is the only currency that can preserve the value of wealth.

Although they concede that gold is regarded by developed economies as more of a commodity than a currency, the analysts believe that private investors and an increasing number of “smart money” hedge funds continue to acquire the precious metal which is perceived rather differently in parts of the world that are benefiting from the fundamental shift of economic power from the West.

“Dai-Ichi Securities” reminded clients that people and institutions in China and India which, between them, are home to one-third of the world’s population, regard gold as real money and set great store in it as a preserver of value.

“Dai-Ichi Securities” maintains that the euro’s problems which are attributable to the Greek debt crisis will begin to afflict other nations who borrowed heavily before, during and after the global recession. The US dollar, the pound and even the Canadian and Australian dollars will lose value against gold over the next 3 years.

“Dai-Ichi Securities”– HBOS Lending Practices Haunt Lloyd’s…

July 6th, 2013 Comments off

“Peter Marsh”: The ill-fated merger between Lloyd’s and HBOS has more skeletons lurking.

Dai-Ichi Securities, the Asia-based asset management firm, believes that the true scale of the dubious lending decisions made by HOS before its merger with Lloyd’s TSB has yet to emerge.

The firm is convinced that a significant proportion of the loans made by HBOS may have been protected by the unprecedented low interest rate environment that has prevailed in the UK since the onset of the financial crisis but its analysts suggest that when interest rates rise, losses at the combined group will mount.

Losses at the Lloyd’s Banking Group for 2009 topped £24bn thanks to writedowns in the wholesale arm and also its international business.

“Dai-Ichi Securities” believes that the bank – over 40% of which is owned by the UK taxpayer following bailouts last year that cost the UK more than any other developed nation.

“Dai-Ichi Securities” said that HBOS, which included Halifax – once Britain’s biggest mortgage lender – had made the mistake of thinking that the property boom in the UK was sustainable and was as much to blame for the substantial writedowns as the borrowers themselves.

Lloyd’s TSB, prior to the merger, had been a fairly prudent lender which had little exposure to the subprime debacle that many of its competitors had invested in when purchasing the collateralized debt obligations that eventually saw their values plummet as property values in the US plunged.

Peter Marsh of Dai-Ichi Securities: US Bond Supply Issues Loom.

May 29th, 2013 Comments off

“Peter Marsh”: The Fed’s absence from the bond market is pushing yields higher.

Dai-Ichi Securities’ Senior Vice President “Peter Marsh”  spoke out to investors and asked that they remained focused on the debt crisis gripping the Euro zone and that this week may be remembered as the one when the cracks began to appear in the perception of the US Treasury as a safe-haven.

Sources close to Asia-based broker, “Dai-Ichi Securities”, say the firm believes that the absence of the US Federal Reserve as a big buyer in the marketplace for US Treasuries has begun to lead remaining buyers to demand higher yields for holding the nation’s debt.

The Fed formally ends its treasury buyback program this month and investors are acutely aware of the potential for oversupply. This has prompted them to stay away from the 5yr and 7 yr auctions this week with those who turned up asking for higher yields.

“Dai-Ichi Securities” are mindful of the fact that the US needs to raise huge amounts of money to finance the various bailouts and stimulus plans it has put in place to save insurers, banks, automakers and to fund the reform of its healthcare system.

Although Peter Marsh does not foresee a crisis of the magnitude that Greece is currently enduring at this juncture, he expects yields to rise steadily in the year ahead.

“Dai-Ichi Securities” has advised clients to eschew sovereign debt in favor of holding precious metals which, they say, are more likely to protect their purchasing power as the dollar inevitably suffers.