Category: Equity
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Equity Futures and Investments in Long-Term
Nowadays, people consider maximizing their investments in long-term, and equity futures are the most effective investment tools that are currently employed in the stock market, as they allow brokers to pay for the current stock price after one year since the actual purchase. Apple Inc. is one of the frontrunners of the technological market that…
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Flotation Costs for Debt and for Equity
We should expect share flotation costs to be well below the company’s equity. In general, flotation costs may vary depending on the company’s size and what actions will be taken before issuing shares to the public. Flotation costs include legal, underwriting, arranger’s, publishing, and auditing fees. These costs reflect the possible future value of equity…
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Foreign Equity Restriction
Foreign Equity Restriction are constrains on the degree of ownership and control, referred to as equity in company law and finance, which foreigners of a country are permitted to control (Emery et al, 2007). Such restrictions are strictly adhered to and are imposed in two different ways. The first way is through legislation. Restrictions through…
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Private Equity Industry: Interview Analysis
Table of Contents Thematic Analysis of Interviewee Responses Thematic Summary of Key Industry Features and Drivers Thematic Summary of the Range of Soft and Hard Skills Required In the Industry Reference List Thematic Analysis of Interviewee Responses To synthesize the data helping to make conclusions regarding the state of affairs in the private equity industry,…
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How the US Equity Market Has Changed in Terms of Its Investors
Table of Contents Introduction Discussion Conclusion Reference Introduction The article “Active, Passive, Retail, ESG, and Value; Oh My!” aims to give readers insight into how the US equity market has changed in terms of its investors. It also looks for evidence of pricing distortions due to ESG-oriented variables and discusses the history of the environment…
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What Is a Private Equity Firm
What is the private equity firm? A Private equity firm can be defined as a company that invest huge amounts of capital known as the private equity fund in the stakes of a private firms. In other words, private equity firms invest in classified equities of working companies through application of various investment strategies. From…
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Commodity Investment Surge Amidst Recession: Equity vs. Commodity Volatility
Table of Contents Introduction Literature Review Methodology Data Analysis and Discussion Conclusion Reference Introduction During the recent recession, there has been an increased tendency among buyers to sell their stock options and invest in commodities like oil, metals, agricultural products, etc. investors had started demanding more of copper and crude oil as the buyers diversified…
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Capital Asset Pricing Model and Equity Valuation
Introduction The scope of financial management includes a wide variety of problems and objectives associated with planning, organizing, directing, and controlling financial resources. These activities include investment decision-making through capital budgeting, raising finance from different resources, and dividend decisions (Brigham & Houston, 2021). The cost of equity valuation is of extreme importance for financial management,…
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Debt Financing and Equity Borrowing’ Comparison
Table of Contents Introduction Discussion Conclusion Reference list Introduction When one intends to start a business, one should focus on how to raise capital and raise money to finance the business operations. Today, many commercial lenders charge differential interest rates for the money borrowed. Some local and international companies specialize in investing in businesses. Such…
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The Mechanics of Different Forms of Private Equity Transactions
Table of Contents Introduction Forms of Private Equity Transactions Leveraged Buyouts (LBOs) Management Buyouts (MBOs) Institutional Buyouts (IBOs) Conclusion References Footnotes Introduction Private equity (PE) refers to a specific type of investment that individuals and organisations correlate with long-term and sometimes medium-term financing where an investor or group of investors buy large stakes in firms…