国际投资英文版ppt.ppt

Francis Ibbotson Chapter 6: The Global Stock Market * Underwriting An underwriter guarantees the issuer will receive a pre-specified amount of cash for the new securities Days or weeks from the time the underwriter buys the securities from the issuer till they sell the securities to the investors are very risky to underwriter Market conditions may fluctuate and underwriter may lose money on the securities because they have to sell them at a lower price It is important to set the ‘right’ price for an IPO If price is too high, underwriters may not be able to sell securities If price is too low, issuer may find it costly to issue securities * Francis Ibbotson Chapter 6: The Global Stock Market * Distribution Investment banker may sell securities to a wide group of investors Or may act as intermediary between issuer and buyer in a private placement The difference between the investment banker’s cost and the sale price is known as the spread Ranges from 5 – 16% for stocks About 4% for bonds * Francis Ibbotson Chapter 6: The Global Stock Market * Electronic Investment Bankers There are several investment banking firms offering internet services DLJdirect Freidman, Billings, Ramsey Group E*Offering OpenIPO E-InvestmentBank Wit Capital Vary in size and sophistication * Francis Ibbotson Chapter 6: The Global Stock Market * Full Disclosure In U.S. the SEC requires most primary issues be accompanied by a prospectus 10 to 20 page document that fully discloses, among other items Purpose for which the proceeds of the issue will be spent Offering price to the public Offering price for special groups, in any Underwriter’s fees Net proceeds to the issuer Information on the issuer’s products, history and location Names and remuneration of officers Detailed statement of capitalization Detailed financial statements Details about any pending litigation * Francis Ibbotson Chapter 6: The Global Stock Market * Full Disclosure Approval of a prospectus by the SEC does not mean the