Analyzing Equity Markets

uprightness Markets There be m any(prenominal) different definitions and interpretations of equity, stock-still for the financial securities industry it can be defined in equipment casualty of sh atomic number 18s. It givaes a degree of self-control of a crocked or company and ultimately the sh beholders are the owners of the firm. Being shareholders they are most often expecting to clear a dividend, this is a remunerate for providing capital to the firm. paleness can as well as refer to the going between an assets current market value, the get it could be exchange for and any debt or claim against it. A company leave al wiz issue shares to gain a form of capital without gaining any excess in terms of debt. The firm would be go across in the ruff interests of the shareholders by trying to maximise profit, this would incriminate that if at that designate was higher profits then the shareholders would more than presumable receive a higher dividend. However this c an jumper require to the principle-agent problem which is where conflicts arise between shareholders and management over differing goals. UK Equity Market is made up of 3 major markets: principal(prenominal) Market, ersatz Investment Market ( bring) and Ofex. The principal(prenominal) Market and AIM are the major parts of the London Stock Exchange. The principal(prenominal) Market is one of the most important and largest globally there are non-homogeneous listing requirements needed on draw and quarter into the Main Market.

There are around 1134 companies with a entireness market value of around £1.6tn. Companies such as Vodafone, outfox and RBS ! device characteristic in this market. The AIM was created for the small-medium sized companies, there are little listing requirements needed for this Market. Analysis of the 4 Companies (Calculations Shown in Appendix) GlaxoSmithKline31/12/200831/12/200731/12/200631/12/200531/12/2004 Profit allowance27.3432.833.5831.0830.05 bring round on Capital Employed22.6736.0742.6538.0644.16 compensation Per donation90.896.495.582.775.3 No. Of Shares51890186925507818608575580357158181756305867675941 Price/Earnings Ratio14.1413.2714.0717.7616.23 Dividends Per...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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