26. Process of Issuing Shares

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Shares
Thivyatharani Thayaratnam
Mind Map by Thivyatharani Thayaratnam, updated 6 days ago
Thivyatharani Thayaratnam
Created by Thivyatharani Thayaratnam 6 days ago
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26. Process of Issuing Shares
  1. Prospectus : A document shared to the public providing details about the business
    1. When a PLC issues share for the 1st time it is called "The INITIAL PUBLIC OFFERING"
      1. PLC : Can sell shares to the others
        1. No permission required unlike PVT LTD
        2. Function of Stock exchanges
          1. Set the price of shares
            1. Protection for investors
              1. Reflect the health of the economy
                1. Provide scope for speculation
                2. SPECULATION : Speculators make short term gains by buying shares when prices are low and selling it when high
                  1. Yield : size of financial return
                    1. (Dividend per share / Price per share ) * 100
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