Under Rule 501 of Securities and Exchange Commission Regulation D, accredited investors are wealthy individuals or entities who do not count towards the 35-person limit in private limited partnerships, allowing substantial capital raising.
Allotted shares are distributed to new shareholders through the process of allotment, forming part of the allotted share capital. They are essential for companies as they raise capital by issuing these shares to investors.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange that gives smaller companies the opportunity to raise capital and gain visibility among investors.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE). Launched in June 1995 to replace the Unlisted Securities Market, AIM provides a platform for smaller, growing companies to raise capital and have their shares publicly traded without the significant costs and regulatory complexities associated with a full market listing.
An Asset-Backed Medium-Term Note (ABMTN) is a financial instrument combining the attributes of medium-term notes and asset-backed securities, typically used to raise capital through securitization.
A method of raising capital where a company sells new shares to an underwriter, who then resells them to the market.
Debt financing is the process of raising capital through borrowing, typically via the issuance of bonds. It contrasts with equity financing, where capital is raised through the sale of ownership stakes in the company (stock).
An equity carve-out is a type of corporate restructuring process that involves a parent company selling a minority share of a subsidiary to the public through an initial public offering (IPO). This allows the parent company to raise capital while maintaining control over the subsidiary.
Equity finance involves raising capital through the sales of shares, where shareholders earn ownership in the company and potentially receive dividends based on company profits.
Equity financing involves raising capital through the sale of shares in a company, providing stakeholders with ownership interests in contrast to accruing debt.
Floating an issue refers to the process by which a company issues new securities to the public in order to raise capital. This process involves several steps, including registering the securities with regulatory bodies and underwriting the issue.
Flotation refers to the process of launching a public company for the first time by inviting the public to subscribe for its shares. This process is also known as 'going public'.
Flotation costs refer to the expenses a company incurs when it issues new securities, including underwriting, legal, registration, and accounting fees. These costs are crucial for companies to consider when planning to raise capital through new stock or bond issues.
Loan stock is a type of fixed-income security that represents borrowed funds, usually in the form of bonds or debentures, which companies issue to raise capital on which interest is paid until the maturity or redemption date.
Marginal Cost of Capital represents the cost of financing for the next dollar of capital raised. Different sources of capital, such as subordinated debt, can have varying costs. This metric is crucial for determining the hurdle rate in discounted cash flow and present value analysis.
Shares issued without any payment, typically as a result of a rights issue, often used by companies as a means to raise capital.
The sale of shares by a company to a selected group of individuals or institutions as a means of flotation or raising additional capital.
The market where new issues of securities are initially sold to investors. It contrasts with the secondary market where existing securities are traded among investors.
A private issue, also known as a private placement, refers to the sale of securities to a relatively small number of chosen investors as a way of raising capital.
Regulation D is a SEC regulation that provides a set of rules and conditions allowing exemptions for private placements of securities, helping companies raise capital without the full registration process.
A method by which listed companies on a stock exchange raise new capital by offering new shares to existing shareholders. This concept is based on pre-emption rights, ensuring existing shareholders can purchase new shares proportionally to their existing holdings.
A marketplace for the sale and purchase of securities, where prices are determined by the forces of supply and demand. Stock exchanges facilitate capital raising for public companies, governments, and other entities, while providing liquidity for investors.
