Capital Market Theory
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• CAPITAL MARKET AND ITS TYPES • PUBLIC ISSUE • PRIVILEGED SUBSCRIPTION • REGULATION OF SECURITY OFFERINGS • PRIVATE PLACEMENT • INITIAL FINANCING • SIGNALING EFFECTS • THE SECONDARY MARKET • PRACTICAL STUDY (MARI Gas Company Ltd) o History and Background o MARI Gas Field o Regional Offices o Management & Key Persons o Equity & Finances o Shareholding o Return to Shareholders o Gas Pricing o Company Information as with ISE o MARI’s 10 years at Glance o Review of Theoretical and Practical Situation CAPITAL MARKET THEORY: AN OVERVIEW
Capital market
The market for relatively long-term (greater than one year original maturity) financial instruments(e.g. bonds and stocks). It deals with bonds and stocks. Within the capital market there exists both a primary and secondary market. A primary market is a "new issues" market.
Primary market
A market where new securities are bought and sold for the first time (a "new issues" market). It flows from the buyers of securities (the savings sector) to the issuers of securities (the investment sector).
Secondary market
In a secondary market, existing securities are bought and sold. Transactions in these already existing securities do not provide additional funds to finance capital investment. Thus the existence of a strong secondary market enhances the efficiency of the primary market.
PUBLIC ISSUE
A large company typically raises funds both publicly and privately. With a public issue, securities are sold to hundreds, and often thousands, of investors under a formal contract overseen by federal and state regulatory authorities. A private placement on the other hand, is made to a limited number of investors,
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• CAPITAL MARKET AND ITS TYPES • PUBLIC ISSUE • PRIVILEGED SUBSCRIPTION • REGULATION OF SECURITY OFFERINGS • PRIVATE PLACEMENT • INITIAL FINANCING • SIGNALING EFFECTS • THE SECONDARY MARKET • PRACTICAL STUDY (MARI Gas Company Ltd) o History and Background o MARI Gas Field o Regional Offices o Management & Key Persons o Equity & Finances o Shareholding o Return to Shareholders o Gas Pricing o Company Information as with ISE o MARI’s 10 years at Glance o Review of Theoretical and Practical Situation CAPITAL MARKET THEORY: AN OVERVIEW
Capital market
The market for relatively long-term (greater than one year original maturity) financial instruments(e.g. bonds and stocks). It deals with bonds and stocks. Within the capital market there exists both a primary and secondary market. A primary market is a "new issues" market.
Primary market
A market where new securities are bought and sold for the first time (a "new issues" market). It flows from the buyers of securities (the savings sector) to the issuers of securities (the investment sector).
Secondary market
In a secondary market, existing securities are bought and sold. Transactions in these already existing securities do not provide additional funds to finance capital investment. Thus the existence of a strong secondary market enhances the efficiency of the primary market.
PUBLIC ISSUE
A large company typically raises funds both publicly and privately. With a public issue, securities are sold to hundreds, and often thousands, of investors under a formal contract overseen by federal and state regulatory authorities. A private placement on the other hand, is made to a limited number of investors,