Friday, December 30, 2011

Equity securities.

Basics Investing Stock : As an investment instrument

Equity (Equity Instruments) is the instrument that the Company issued to the holder (Holder) to raise funds to run the business. The shareholders' equity will be a. "Owner" which has an interest or right in property and income of the business. Including the opportunity to receive the dividend yield (Dividend), however, that the parties have obligations to pay dividends out of capital is always a decision to pay dividends will depend on the profits and the terms of the business. Basically, equity is divided into several types.

Common stock (Common Stock).
An equity instrument. Issued by companies to raise capital from the public. The shareholders will have the right to own a company. Have the right to vote at a meeting of shareholders in proportion to the shares in the co-decision makers in the key issue at a meeting of shareholders as a dividend recapitalization. Merger, etc..

In addition, shareholders are also entitled to receive dividends when the company is profitable. And have the opportunity to profit from the difference in price when the stock price increased by the potential of the company. To have the right to subscribe for new shares when the company increased capital or such warrants. To shareholders.

Preferred Stock (Preferred Stock).
An equity instrument holders have an owner, just like ordinary shares. The only difference is that the preferred shareholders of common stock are entitled to repayment of capital to shareholders if the company goes out of business.

Convertible Bonds (Convertible Debenture).
Is similar to that of different bonds, convertible debentures have the right to convert into common stock at a time and price.Specified in the prospectus. During the economic good. This stock has been very popular. The buyer expects to receive returns on common stock prices. Once converted, so it is more profitable rate of return on common bonds.

Warrants or Warrant (Warrant).
Instruments that give holders the right to purchase the securities underlying the warrants (Underlying Asset), such as common stock.Debentures, preferred shares or derivatives. The exercise price (Exercise Price) of the exercise. (Commonly used as a ratio) and Within a predefined period of time. If the period is not able to exercise them.

DW (Derivative Warrant: DW).
The instrument is similar to warrant general (Warrant), the Issuer (Issuer) entitles the holder DW to buy or sell an underlying asset (Underlying Securities) which may be a stock (Stock) or Index (Index. ) In the exercise price.

Exercise. And duration of the exercise. The issuer is required to deliver the securities or cash.
Currently, the Commission shall require that issuers of derivative warrants can be issued only to the right.
Tender reference only. DW is a tool used to manage investment risk. Both issuers and buyers of securities. The institutional investors that invest in shares, a large number of mutual funds. Or insurance company.
That can be used as a tool to prevent the damage that may result from fluctuations in securities prices.

Warrants to subscribe for new shares has been transferred. (Transferable Subscription Rights: TSR).
The company notes issued to all shareholders in proportion to the number of existing shares. To shareholders as evidence.The options to purchase shares of the company. The existing shareholders who do not wish to exercise the right to buy shares. Can sell or transfer the rights to.Others to the benefit of shareholders and other investors have the opportunity and choice to invest more. It also added liquidity.The company's stock. And allows the company to raise more capital. Or according to the target with this problem.To foreign investment restrictions on investment to subscribe for new shares by listed companies can be allocated to the TSR.Selling in the stock market has.

Receipt of benefits arising from the Thai Stock Market. The DR NV (Non - Voting Depositary Receipt: NVDR).
Instruments issued by the company. NVDR Thailand Co., Ltd. has been listed automatically Tiai (Automatic List) and have
Underlying securities (Underlying Asset) into ordinary shares. Preferred. Warrants. Or warrants to purchase shares.
The assignment is listed on the Stock Exchange. Which investors can trade NVDR has the same securities.
Registrar General.

Receipt of benefits arising from the underlying securities (Depository Receipt: DR).
An instrument issued by Siam DR Co., Ltd. is a licensed securities may be either ordinary bonds.
Convertible bonds. DR holders will be entitled to benefits. Like all the shareholders of the company is.
Financial benefits (Financial Right) or the right to vote (Voting Right) in the company.
In the voting. Holders of warrants are required. Thai and vote through Siam DR Co., Ltd. only.

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