CISI Unit 2 Securities
Bloomberg, reuters, third party administrators, IT consultants, Lawyers
3rd party vendors
banks and brokers are part of the
sell side
asset managers are part of the
buy side
Professional sector business
Markets, corporate insurance, fund management, investment banks - trading,
banking, market making, research corporate finance, investment management,
custodian banks
Retail sector
retail banking, pensions, insurance, investment services, custodians, financial
planning and wealth management
What is equity?
A company can issue shares in order to raise capital
Other names for shareholders
shareholders, voting rights, owners
Authorised share capital
Authorised share capital is the maximum amount of capital that can be raised
through share issue
,issued share capital
number of shares the company has allotted o shareholders
nominal value
fixed legal value of a share, accounting term
Market capitalisation
number of shares multiplied by the market price
free float
Number of shares in the hands of the public
- owners holding 5% or more of all shares
- restricted stocks
- insider holdings
What kind of dividends do ordinary shares have?
Variable
What kind of dividends do preferred shares have?
fixed
Do ordinary shares have voting rights
yes
A/B shares, redeemable, partly paid
Ordinary shares
Cumulative, participating, convertible, redeemable
Preferred shares
, Priority order upon liquidation
Preferred, ordinary
What are redeemable shares
offered by a company to shareholders that may be bought back by the company
at its election. Companies are permitted to issue ordinary shares that can be
redeemed, as long as conventional non-redeemable ordinary shares are also in
issue
Partly paid
each ordinary share has a nominal value, which represents the minimum amount
that the company must receive from subscribers on the issue of the shares.
Occasionally the company may not demand all the nominal value at issue, with
the shares then referred to as being partly paid
cumulative
right to receive the dividend is rolled over into the next period
participating
opportunity for further dividend
convertible
right to convert into ordinary shares
American depository receipts (ADR)
A used by non-US companies in order to encourage US Dollar investments to
buy an equity stake
Bloomberg, reuters, third party administrators, IT consultants, Lawyers
3rd party vendors
banks and brokers are part of the
sell side
asset managers are part of the
buy side
Professional sector business
Markets, corporate insurance, fund management, investment banks - trading,
banking, market making, research corporate finance, investment management,
custodian banks
Retail sector
retail banking, pensions, insurance, investment services, custodians, financial
planning and wealth management
What is equity?
A company can issue shares in order to raise capital
Other names for shareholders
shareholders, voting rights, owners
Authorised share capital
Authorised share capital is the maximum amount of capital that can be raised
through share issue
,issued share capital
number of shares the company has allotted o shareholders
nominal value
fixed legal value of a share, accounting term
Market capitalisation
number of shares multiplied by the market price
free float
Number of shares in the hands of the public
- owners holding 5% or more of all shares
- restricted stocks
- insider holdings
What kind of dividends do ordinary shares have?
Variable
What kind of dividends do preferred shares have?
fixed
Do ordinary shares have voting rights
yes
A/B shares, redeemable, partly paid
Ordinary shares
Cumulative, participating, convertible, redeemable
Preferred shares
, Priority order upon liquidation
Preferred, ordinary
What are redeemable shares
offered by a company to shareholders that may be bought back by the company
at its election. Companies are permitted to issue ordinary shares that can be
redeemed, as long as conventional non-redeemable ordinary shares are also in
issue
Partly paid
each ordinary share has a nominal value, which represents the minimum amount
that the company must receive from subscribers on the issue of the shares.
Occasionally the company may not demand all the nominal value at issue, with
the shares then referred to as being partly paid
cumulative
right to receive the dividend is rolled over into the next period
participating
opportunity for further dividend
convertible
right to convert into ordinary shares
American depository receipts (ADR)
A used by non-US companies in order to encourage US Dollar investments to
buy an equity stake
