Scribd Logo
Upload

Welcome to Scribd!

  • Lesson 7.2 Capital Market

    Uploaded by

    Thy Nguyen
    3 views11 pages
    The document discusses capital markets and going public (IPO) on stock exchanges. It provides examples of how companies can raise funds through an IPO by listing on exchanges like the Hong Kong or New York stock exchanges. The Saudi Aramco IPO raised $25 billion, higher than expected. Companies may pursue IPOs to finance infrastructure, acquire other firms, or allow employees to hold stock. Capital markets involve investors, borrowers, market makers, and have benefits for each group. Global capital markets are growing due to technology, deregulation, and provide lower costs and more opportunities than local markets. However, increased volatility and "hot money" also bring risks.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses capital markets and going public (IPO) on stock exchanges. It provides examples of how companies can raise funds through an IPO by listing on exchanges like the Hong Kong or New York stock exchanges. The Saudi Aramco IPO raised $25 billion, higher than expected. Companies may pursue IPOs to finance infrastructure, acquire other firms, or allow employees to hold stock. Capital markets involve investors, borrowers, market makers, and have benefits for each group. Global capital markets are growing due to technology, deregulation, and provide lower costs and more opportunities than local markets. However, increased volatility and "hot money" also bring risks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views11 pages

    Lesson 7.2 Capital Market

    Uploaded by

    Thy Nguyen
    The document discusses capital markets and going public (IPO) on stock exchanges. It provides examples of how companies can raise funds through an IPO by listing on exchanges like the Hong Kong or New York stock exchanges. The Saudi Aramco IPO raised $25 billion, higher than expected. Companies may pursue IPOs to finance infrastructure, acquire other firms, or allow employees to hold stock. Capital markets involve investors, borrowers, market makers, and have benefits for each group. Global capital markets are growing due to technology, deregulation, and provide lower costs and more opportunities than local markets. However, increased volatility and "hot money" also bring risks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 11

    Capital Market

    The tools of the Game


    Learning goal: There are several ways that a firm can apply to
    join the global market. Besides, using FDI to invest directly to a
    foreign company, the firm can also join global capital market
    HongKong Stock
    Exchange

    New York Stock


    Exchange
    Go for the IPO

    U.S. Securities
    and Exchange
    Commission
    The initial offering price: $68 a share
    BUT
    Opened at $92.70
    Raised $25 billion ($6 billion higher than expected)
    Valued the company at  $231 billion
    What are the motives for a company to go for the IPO

     finance the infrastructure


     a currency to acquire other enterprises
     employees to held stock
    Who/which organizations will join the capital market?

    Investors Market makers


    Borrowers
     Companies
     Commercial Bankers (indirect)
     Individuals  Individuals
     Investment Bankers (direct)
     Institutions  Companies
     Governments
    What are the benefits of each stakeholder when joining the market?

     Equity loans
     Debt loans

    Investors Market makers


    Borrowers
     Transaction fees
     Percentage on interest

     Dividends + Stock prices increase


     Principal + Interest
    What are the attractions of the Global capital market to borrower and
    investors in comparison with the Local capital market?

    Lower cost of Portfolio


    capital Diversification

     larger pool of investors  wider range of investment


     larger supply of funds opportunities
     greater liquidity  diversify their portfolios
     the price of borrowing internationally
    Borrowers money is lower  reduce risk
    Investors
    What are the driving factors making the Global capital market growing
    rapidly?

    Information Technology

    Deregulation
     deregulation of financial
    services
    growing at a rapid pace
     removal of capital
    controls
    1997
    Is it safe to invest your money in the Global capital market?

    What is hedge fund:


    https://www.youtube.com/watch?v=xUa3BilLIrA

    LACK UNEQUAL

    Less “patient money”, more “hot money”

    increase in the volatility


    Examples of Global Capital Market

    The Eurocurrency The Global Bond The Global Equity


    Market Market Market

    You might also like