Investment Market and Transaction

Investment Market and Transaction PowerPoint PPT Presentation

  • Uploaded on
  • Presentation posted in: General

Learning Goals. Differentiate between primary market and secondary marketBasic types of transactionHow to buy and sell sharesMalaysian Security Market Regulations. Introduction. Securities markets are forums that allow suppliers and demanders of securities to make financial transactions.How fi

Download Presentation

Investment Market and Transaction

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

1. CHAPTER 2 Investment Market and Transaction

2. Learning Goals Differentiate between primary market and secondary market Basic types of transaction How to buy and sell shares Malaysian Security Market Regulations

3. Introduction Securities markets are forums that allow suppliers and demanders of securities to make financial transactions. How firms issue securities?

4. Primary Market New stocks, bonds or other securities that offered to the public by investment bankers Two types of primary market issues of common stock Initial Public Offering Public offering Private placement Seasoned New Issued Public offering Private placement Right offering Stock splits

5. IPO Process First, obtain the approval of it current shareholders   Auditors and lawyers must also must certify that all documents for the company are legitimate. Then, finds an investment bank who willing to underwrite the offering. The company files a registration statement with the SC (Security Commissioner), which includes PROSPECTUS that describes the key aspects of the issue, the issuer, and its management and financial position. After SC approves the registration statement, the price of the offered to the public securities will be announced. The investment bankers and company executives promote the company’s stock offering through a road show, a series of presentations to potential investors around the country and sometimes overseas.

6. Reason for getting listed Higher Profile Confidence Additional Funds Expansion

7. Secondary Market Once securities are issued to the public, investors may trade them among themselves in the secondary market. The secondary market will provide liquidity to the sellers.   is an organized exchange which securities are traded after they have been issued.

8. Development of the Malaysian Securities Industry 1930 - Singapore Stockbrokers’ Association – the first formal organization in the securities business in Malaysia. 1937- Re-registered as Malayan Stockbrokers’ Association, but still no public trading of shares. 1960- Malayan Stock Exchange formed and public trading of shares began on 9 May. 1964- Stock Exchange of Malaysia formed. 1965- With the secession of Singapore from Malaysia, the common stock exchange continued to function but as the Stock Exchange of Malaysia and Singapore (SEMS).

9. 1973- With the termination of currency interchangeability between Malaysia and Singapore, the SEMS was separated into The Kuala Lumpur Stock Exchange Bhd (KLSEB) and The Stock Exchange of Singapore (SES). Malaysian companies continued to be listed on SES and vice-versa. 1973- A new company limited by guarantee, The Kuala Lumpur Stock Exchange (KLSE) took over operations of KLSEB as the stock exchange. In 1994, re-named Kuala Lumpur Stock Exchange. 2004- Kuala Lumpur Stock Exchange became a demutualised exchange and was re-named Bursa Malaysia.

10. Regulatory Structure Securities Industry Act 1983 Securities Industry (Central Depositories Act) 1991 Securities Commission Act 1993 Companies Act 1965

  • Login