2. Understand the structure, features, and regulatory and trading environment of the securities market (9) Flashcards
2.1 Describe the key features of the main trading markets. 2.2 Describe the role, structure and regulation of the global securities market.
1
Q
Principal and agent trading
A
Principal - own behalf on hope of sale profit
Agent - profit on comission to clients
2
Q
Company listings - role of advisers
A
Sponsor
* Appropriate for listing (agent)
* approved by UKLA ( be broker, inv bank etc. )
Corporate broker
* main interface with market
* pricing & allocation of shares
* advice on market conditions (demand etc.)
Reporting accountant
* review financial reports for prospectpus and resadiness for IPO
Lawyers
* one to advice owners; other to sponer
* legal due dilligance and legal opinions
Others
* pr consultant, valuer, insurance brokers
3
Q
Types of IPO
A
- Offers for sale - most common. issuing house to price to ensure sub
- Offers for sub - bids above sub level. reserve right to cancel if order not met
- Placings - fastest and cheapest. sup to 1. determine price then calls on pension funds, insurance houses and inv banks
- Introductions
4
Q
Best execution factors
A
