Stock exchanges

It is an advantage to a company to be listed on a stock exchange since its investors can more easily sell their stock if they decide to do so. This increased hquidity makes investors more willing to accept a lower rate of return, which effectively lowers the cost of capital to the company. 

Not all the shares in a company may, or need to be, issued. By the issue of more shares, at an appropriate stage in the company s growth, capital may be raised from the institutions mentioned above or, through a flotation on the Stock Exchange, from the investing public at large. When this happens, the price paid per share by the purchasers may be many times greater than the nominal value. 

Company A has an authorized and issued share capital of 300,000 ordinary shares of 1 each held by five shareholders. After many years of successful trading, it is decided to seek a listing on the Stock Exchange. The capital is increased to 3 million and is then divided into 12 million shares of 0.25. Of these, 8 million are offered for sale to the public at 1 each. Subject to the costs of the issue, this will raise 8 million of fresh capital, some of which will be used in the business and some will go to... 

Ratios are widely used to compare the performance of a business with predetermined objectives set by the business itself, with standards used by banks and other lenders, with other businesses in the same segment of industry (inter-firm comparison) and by the Stock Exchange and... 

If a company plans to finance a large project by issuing new stock, it means that the percentage of the company s ownership represented by one share of stock decreases. As a result, the stock price often goes down after a large new block of stocks is issued. Because of this, when a large new block of stock is issued these stocks must be sold at a price below that currently listed on the stock exchange. 

As discussed above, the value of P used above will be less than the value listed on the stock exchange. It is equal to the amount received per share minus the cost per share of issuing and selling the stock. P is usually about 80% of the current market value. In general, for the chemical industry the dividends are about 3% of the market price of the stock. Chemical Week lists the dividends paid in each issue. 

Figure 8.10 The New York Times of 20 December 2007 reported on many nanotechnology companies planning quotation at the Stock Exchange.

US stock exchanges based on the probabilistic approach, requiring the report of only proved reserves they, nonetheless, also allow scope for some discretion. In conclusion, it can be said that, so far, there are no international requirements or standards in place regarding reserve classification and reporting, and the methodologies used for reserve estimates seem to vary according to their purpose as a result, reserve data are often referred to as political data . The consequences are inconsistency and controversy about the future supply of oil and gas. 

UPS became a public company in 1999, going public in the largest IPO in the history of the New York Stock Exchange. Today, about half of UPS stock is owned by its current and former employees and their families. UPS has a market capitalization of 46 billion and is one of only seven public companies with an AAA credit rating from both S P and Moodys. 

Emergence is the unplanned and unpredictable occurrence of new system qualities and/or system entities. Examples are the increased significance of a critical audience, including pubhc interest groups, or the emergence of new market constellations or stock exchange performance. 

Prior to 1997, only a few QA/QC guidelines existed, and monitoring programs were not commonly conducted by mining companies. In 1997, the Toronto Stock Exchange and the Ontario... 

Other material issued by companies which relates to medicines but which is not intended as promotional material for those medicines per se, for example, corporate advertising, press releases, market research material, financial information to inform shareholders, the stock exchange and the like, and educational material for patients etc, should be examined to ensure that it does not contravene the Code or the relevant statutory requirements. 

Information made available in order to inform shareholders, the Stock Exchange and the like by way of annual reports and announcements etc. may relate to both existing medicines and those not yet marketed. Such information must be factual and presented in a balanced way. 

Sasol is now a public company and its shares are listed on the Johannesburg Stock Exchange. Despite the fluctuations in the price of crude oil, the commercial success of the process is reflected by the four-fold increase in the share prices since 1979. The reason for the viability of the process in South Africa is the combination of three factors ... 

A Dichotomy between Ownership and Management. The company s shares are listed on stock exchanges, and their performance is scrutinized by the financial community, which has a short-term view. 

Such messages of hope have come from nearly every country. The secrets of Nature s bounty were often unlocked by people so simple that they never guessed their discoveries would someday reach the floor of the stock exchange. Centuries ago, for who knows how long, there must have been patient, watchful testing of hundreds of plants. How else to explain the final triumph ... 

FIGURE 24.2 Aggregate market capitalization of public combinatorial chemistry companies. Just as the ability to raise capital in combinatorial chemistry has increased steadily during the 1990s, so has the combined market capitalization of companies dedicated to the field that are also traded publicly in stock exchanges. Specifically, the combined market value of these companies has increased by a factor of 65 during the 1990s. Source Biovista (www.biovista.com). 

Huhtamaki Oyj was established in 1920 and is now one of the world s leading consumer packaging companies. The company is based in Finland and is listed on Helsinki Stock Exchange. Huhtamaki has more than 70 manufacturing and sales units and over 15,000 employees in 36 countries. Net sales in 2004 were approximately 2.1 billion. 

Vertex Pacific s parent company Vertex Holdings was listed on the New Zealand Stock Exchange in 2002. 

---