Dilution refers to the reduction in the per share value of a stock. Dilution occurs when a company issues new shares of stock. This could occur, for example, as part of a secondary offering, merger or acquisition activity, or to satisfy incentive option plans. These actions cause the total number of shares outstanding to increase and the percentage of ownership represented by one share of stock to decrease. In other words, the pie is cut into a greater number of
A trade in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates - which can often be substantial, depending on the amount of leverage the investor chooses to use.
QDII, qualified domestic institutional investor, is a scheme relating to the capital market which is set up to give financial institutions the ability to invest in overseas markets in categories such as securities and bonds. It provides limited opportunity for domestic investors to access foreign markets at a stage where a country’s currency is not tradable or floating completely freely. China allows QDIIs to invest in foreign securities markets via approved insurance companies, banks, fund
Catalist, the transformed SESDAQ, is Singapore Exchange’s new sponsor-supervised listing platform for fast growing local and international companies.
It allows a sponsor to determine the suitability of a company for listing without SGX reviewing the admission of the company. The rules and processes for secondary fundraising and business expansion have been changed to meet growth companies’ needs.
Under Catalist’s rules, companies must list through a Sponsor and need not meet any
Compound annual growth rate, or CAGR, is a term that gets used when investment advisors tout their market savvy and funds promote their returns. But what does it really show?
The CAGR is a mathematical formula that provides a “smoothed” rate of return. It is really a pro forma number that tells you what an investment yields on an annually compounded basis
Management Buy-Out is the term applied when a business is sold to the existing management team. Often this occurs when companies seek to dispose of parts of the business or where the existing owner-manager is looking to retire.
This is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically speaking, this is the available price at which an investor can sell shares of stock.
The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets, however, seldom exist.
