If a public company is not issuing a prospectus on its formation it must file a statement in lieu of prospectus also known as a substitute prospectus or substitute circular. This statement is issued with the registrar of companies. What is a statement in lieu of prospectus The term ‘statement in lieu of prospectus’ simply …
There are various pricing models used for security valuation. These can be based on the balance sheet of the organisation or discounted cashflows. In other cases, ratios can be applied. Valuation is done in order to determine if a security is undervalued, overvalued or to monitor the overall performance of a security. In some cases, …
Corporate governance has steadily grown from a little known catchphrase echoed in the halls of company executives to a key component in basic management education. Many factors have influenced corporate governance along its way. Before we detail these factors we need to understand what corporate governance is and what it means for companies. What Is …
It may seem like it has been around since the beginning of time but venture capital is a fairly recent part of business and industry. It started sometime after 1945 with the end of World War II. Venture capital gained popularity in the 1970s and blew up in the 1980s with the silicon valley boom …
A bill of exchange is a legal document containing a written order to pay a certain amount of money to a specified person. The terms and conditions of the bill of exchange determine whether the money to be paid has a discount. The difference between the face value and the amount of money received is …
In a simple world, profit maximisation and wealth maximisation would seem like the same thing but there are marked differences between the two approaches. The two can certainly go hand in hand and are by no means mutually exclusive. We can find key differences in their time horizon, approach to risk, bench-marking, time value of …
An Intercreditor agreement is used by lenders to establish their rights and security to a loan taken by a borrower when the borrower has more than one creditor for the same loan. Normally, the lenders simply acknowledge that each of them is entitled to a specific claim on the assets of the borrower. In cases …
Any firm that wishes to offer securities such as bonds or shares to the public must issue a registration statement describing the issue and the firm’s future prospects with the security’s exchange commission (SEC). This statement is called a prospectus. A prospectus helps investors make informed decisions about investing in a company because it contains …
Capital budgeting is a method of evaluating large investment projects and determining if they should be undertaken. Capital budgeting features large capital investments usually with their determinable cash flows. These can be in the form of say processing plants or entire businesses that can standalone. The decision of whether or not to invest will depend …
The foreign exchange market is the largest market in the world. It facilitates trillions of US dollars of currency transactions on a daily basis. It provides a meeting place for individuals, businesses and even governments that seek to exchange one currency for another. The majority of world trade is denominated in US dollars, even where …
