Understanding Prospectus Types, Indoor Management, and Promoter Roles
Prospectus: Types and Key Concepts
Matters to be Stated in a Prospectus (Section 26):
A prospectus may be issued by or on behalf of a public company, either concerning its formation or subsequently, or by any person engaged or interested in the formation of a public company.
Types of Prospectus
Shelf Prospectus
- Certain classes of companies, as regulated by the Securities and Exchange Board, may file a shelf prospectus with the Registrar during the initial securities offering. This prospectus indicates
Understanding Business Funding: Types, Sources, and Short-Term Strategies
Funding Issues: Sources and Types
1. Relationship Between Asset Types and Sources of Financing
Assets: Goods and rights of the company. The way assets are distributed determines the economic structure of the company. Assets are divided into two groups:
- Current Assets: Assets and rights that do not remain with the company but circulate and are replaced by others.
- Fixed Assets: Assets that remain fixed in the company for a period of time. Also known as immobilized assets.
Liabilities: Debts and equity.
Read MoreUnderstanding Company Assets and Liabilities
Current Assets
Group the elements that stay with the company a short time (less than 1 year). It is divided into:
- Stocks: Items that are stored pending processing or use in processing or sale. Includes merchandise (items that the company acquires to be sold without transformation), raw materials, fuel, spare parts, office supplies, finished products, and packaging.
The difference between finished products and goods is that the former have been produced or manufactured by the company, while the goods
Read MoreKey Stock Market Terms and Definitions
Bid: The price a buyer is willing to offer for shares in a company.
Blue Chip Stocks: Stocks of leading companies with a reputation for stable growth and earnings. *Generally considered among the best stocks.*
Bond: Certificate issued by companies and governments to their lenders.
Capital: Money and other property of companies used in transacting the business.
Capital Stock: All shares representing ownership of a company.
Commodities: Products such as agricultural products and natural resources (wood,
Read MoreFactoring and Bonds: Funding Strategies for Business Growth
Financing Through Factoring
Factoring involves a specialized company, a factoring company, responsible for collecting receivables from other companies. A company with drafts or bills receivable and immediate cash needs can sell them before maturity to a factoring company, which will charge a fee.
Factoring offers similar advantages to discounting bills, with the added benefit that once the rights are sold, the company is free from the risk of defaults.
The biggest drawback is its high cost, as the
Read MoreUnderstanding Securities Markets and Corporate Finance
Securities Markets and Corporate Finance Operations
Financial assets are a means of maintaining wealth for the owner and a source of funding for those who issue them.
Classification:
- Fixed income financial assets: These contribute to long-term flows, such as bonds or obligations.
- Equity financial assets: These are uncertain, IQ-dependent flows that generate profits distributed by the company as dividends per share.
The Markets
Financial assets are traded in markets. The market is formed by all the markets
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