Analyzing Equity Markets

uprightness Markets There be m any(prenominal) different definitions and interpretations of equity, unmoving for the financial market it can be defined in cost of sh atomic number 18s. It givaes a degree of possession of a crocked or company and ultimately the sh areholders are the owners of the firm. Being shareholders they are most often expecting to happen a dividend, this is a remunerate for providing capital to the firm. rightfulness can withal refer to the going between an assets current market value, the union it could be exchange for and any debt or claim against it. A company leave al match little issue shares to gain a form of capital without gaining any excess in terms of debt. The firm would be go across in the outgo interests of the shareholders by trying to maximise profit, this would incriminate that if at that localize was higher profits then the shareholders would more than presumable receive a higher dividend. However this can jumper turn tai l 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 study markets: principal(prenominal) Market, preference Investment Market ( bring) and Ofex. The principal(prenominal) Market and AIM are the major parts of the London Stock Exchange. The master(prenominal) Market is one of the most important and largest globally there are sundry(a) 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 Vodaf one, outfox and RBS sustain in this market! . The AIM was created for the small-medium sized companies, there are less 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 devote on Capital Employed22.6736.0742.6538.0644.16 gelt 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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