Flashcards in Chapter 9 - The Securities Market Structure Deck (4)
UK Listing Authority (UKLA)
Responsible for setting and administering listing requirements for Plcs seeking and obtaining a full listing on the LSE, including implementation of any relevant EU directives (currently).
The LSE is responsible for the operation of the exchange including trading of securities in secondary market, although UKLA can suspend the listing of particular securities, and can remove their secondary market trading activity.
Sufficient time to consider the bid
Board must act in the best interests of the shareholders
No false markets
Adequate resources for paying consideration
Reasonable timetable for the bid process
Primary Market/ New Issues Market
Allow companies to raise capital via IPO.
Underwritten by Investment Bank (Guaranteed).
Best efforts basis (not-Guaranteed).
Large IPO usually underwritten by syndicate of IB's led by a lead underwriter - who take the highest commission or gross spread.
Surplus funds held by potential investors be matched with investment opportunities