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Barbarians at the Gate

1. The news may pump up the share price.


2. Buyout shareholders and go to being private. It involves tons of money but you get a
mortgage against the asset od your company.
3. The company advertises the future and raise the required money to fulfil its purpose.
4. A leveraged buyout (LBO) is one company's acquisition of another company using a
significant amount of borrowed money to meet the cost of acquisition. The assets of
the company being acquired are often used as collateral for the loans, along with the
assets of the acquiring company. The use of debt, which normally has a lower cost of
capital than equity, serves to reduce the overall cost of financing the acquisition. The
cost of debt is lower because interest payments often reduce corporate income tax
liability, whereas dividend payments normally do not. This reduced cost of financing
allows greater gains to accrue to the equity, and, as a result, the debt serves as a
lever to increase the returns to the equity.

The Scam 1992


1. A bank receipt is a document that contains a summary of the transaction details that
were used to send a payment.
2. Speculative Grade Liquidity Rating: A rating of the risk that a company will not be
able to meet is short-term liabilities.
3. A public debt office or a debt management office is an autonomous government
agency which acts as the investment banker to the government and raises capital
from the markets for the government. 
4. Large demand will lead to shortage in supply. If this happens in industry of one
country, stock price of competition industry may grow in the top 5 countries
producing same product.
5. Shorting of shares mean to borrow shares and immediately sell them in a hope that
it may fall later on and if they fall, return it to the broker an take the profit. For
example: you sell XYZ shares @ Rs. 500 by borrowing it from your broker. Within a
period of 14 days, it went @ Rs. 450 and you buy them and return it to the broker. In
the whole process, your profit will be Rs. 50 approx.
6.

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