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Lesson Posted on 03 Jan Financial Planning/Stock Market Trading Shares and Dividends Financial Planning/Stock Market Trading/Commodities Trading +1 Financial Planning/Stock Market Investment less

Mutual Funds

Sunlight Financial Tech

We are leading stock brokers in india .We provide all types of investment and financial services all...

A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides how to invest the money, and for this he is paid a fee, which comes from the money in the fund. Mutual funds are usually... read more

A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides how to invest the money, and for this he is paid a fee, which comes from the money in the fund.

Mutual funds are usually "open ended", meaning that new investors can join into the fund at any time. When this happens, new units, which are like shares, are given to the new investors.

There are thousands of different kinds of mutual funds, specializing in investing in different countries, different types of businesses, and different investment styles. There are even some funds that only invest in other funds

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Lesson Posted on 16/08/2017 Shares and Dividends Tuition/MBA Tuition Exam Coaching/MBA Entrance Coaching

Methods Of Floating Of New Issue Of Shares- Security Analysis And Portfolio Management

Nirmal Kumar R

I am a Asst professor (MBA,. BE.,).. I will handle Classes for Quantitative Aptitude, Reasoning, MBA,...

1. What are the methods of floating of new issue of shares? Ans. Initial issues are floated through: Offer through prospectus Bought out deals/offer for sale Private placement Right issue Book building 2. Offer through prospectus: Shares issued to public through prospectus which consists the... read more

1. What are the methods of floating of new issue of shares?

Ans. Initial issues are floated through:

  • Offer through prospectus
  • Bought out deals/offer for sale
  • Private placement
  • Right issue
  • Book building

2. Offer through prospectus: Shares issued to public through prospectus which consists the following details:

  • General information about the company.
  • Capital structure of the company.
  • Payments of the issue.
  • Particulars of the issue.
  • Company, management and project.
  • Particulars regarding the other listed companies under the same management in last 3 years.
  • Details of outstanding litigations pertaining to matters likely to affect financial position of the company.
  • Financial information of the company.

3. Bought out deals:

  • Promoter places his shares with an investment banker(dealer/sponsor) who offer to the public at a later date.
  • In addition to the sponsor, individuals and other smaller companies participating in the syndicate.
  • The sponsors hold on these shares for a period and at an appropriate date they offer the same to the public.
  • The hold on period may be as low as 70days or more than a year.
  • Dealer decides the price after analysing promoters background.
  • Wholesaler may be merchant banker or company with surplus cash.

4. Private placement: The issue is placed with a small number of financial institutions, corporate bodies and high networth individuals. Financial intermediaries are:

  • UTI
  • Mutual fund
  • Insurance companies
  • Merchant banking subsidiaries

5. Right Issue:

  • If a public company wants to increase its subscribed capital by allotment of further shares to existing share holder.
  • Issue right shares after two years from the date of its formation or one year from the date of its first allotment, whichever is earlier.
  • Time given to accept right offer should not be less than 15 days.
  • Share holders have no legal binding to accept the offer and they have right to renounce the offer in favour of any person

6. Book building:

  • In this process, the price determination is based on orders placed and investors have an opportunity to place orders at different prices as practised in international offerings.
  • Recommendations given by Malegam committee for the introduction of book building process.
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Answered on 08/12/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

Mohamed Fatin Nizami

Tutor

Preference share carry fixed rate of dividend whereas equity shares have fluctuating rates of dividend based on the profits of the company.
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Answered on 07/12/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

Barkha B.

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A debenture is a medium to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest.
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Answered on 08/12/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

A man invest Rs 8800 on buying shares of face value of rupees hundred each at a premium of 10% at the... read more
A man invest Rs 8800 on buying shares of face value of rupees hundred each at a premium of 10% at the end of year as dividend, find the number of shares he has in the company? read less

Mohamed Fatin Nizami

Tutor

8800/110= 80 shares.
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Answered on 01/12/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

What is the difference between cumulative and non - cumulative share?

Saurabh Bala

A term sheet may refer to dividends as being either cumulative or non-cumulative. The key difference is that if the dividend is non-cumulative and the company (through its board) doesn't make a decision to issue a dividend in year one, or doesn't have the cash resources to do so, the next year the divident... read more
A term sheet may refer to dividends as being either cumulative or non-cumulative. The key difference is that if the dividend is non-cumulative and the company (through its board) doesn't make a decision to issue a dividend in year one, or doesn't have the cash resources to do so, the next year the divident slate is wiped clean and the company has no obligation to 'catch up' on the issuance of dividends for previous years. What this means is that if the dividend is not issued in year one and a dividend were to be issued in the next year, the company would not be obligated to issue dividends cumulatively or retroactively for previous years in which the company was unable to issue a dividend. This can also have an effect on the sale of the company. A cumulative dividend clause will trigger a payout to preference shareholders that includes what they would have been paid by way of dividend for all those years they never received one and this payment would rank before any sharing of the exit rupees with ordinary shareholders. read less
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Answered on 22/11/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

Define share market?

Aditya Rathod

Tutor

It is a place where shares of public listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.
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Answered on 07/12/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

Define share brokers and brokerage?

Shambhavi S.

A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients through a stock exchange such as NIFTY and SENSEX, or over the counter in return for a fee or commission.The... read more
A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients through a stock exchange such as NIFTY and SENSEX, or over the counter in return for a fee or commission.The fee/commission charged by the broker is called the brokerage. read less
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Answered on 28/11/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

What is the difference between sensex up and sensex down?

Nitish Kumar Tiwari

Home Tutor

Around 50000 companies are listed on BSE, it comprises of small cap, mid cap and large cap companies. The 30 stocks are selected in a way that it represents the overall market condition. So if SENSEX moves up it means majority of 30 companies are performing well this further implies that majority of... read more
Around 50000 companies are listed on BSE, it comprises of small cap, mid cap and large cap companies. The 30 stocks are selected in a way that it represents the overall market condition. So if SENSEX moves up it means majority of 30 companies are performing well this further implies that majority of companies listed on BSE which are actively traded are performing well. And if SENSEX moves down it implies majority of companies didn't performed well that trading day. The UPs and DOWNs are tracked by Standard & Poor's Hence the name S&P BSE SENSEX. read less
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Answered on 09/12/2016 Tuition/Class IX-X Tuition Tuition/Class IX-X Tuition/Mathematics Shares and Dividends

Mukesh invested in Rs 25 shares of a company paying 12% dividend. If he received 10% per annum on his... read more
Mukesh invested in Rs 25 shares of a company paying 12% dividend. If he received 10% per annum on his investment, at what price did he buy each share? read less

Next Learning Center

Dividend paid by company =12% of Rs 25 = 25 x 12/100 = Rs. 3/-. 10% of investment = Rs. 3/-. 100% investment = Rs 3 x 100/10 = Rs. 30/-.
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