Analyzing Equity Markets

uprightness Markets There be m any(prenominal) different definitions and interpretations of equity, even so for the financial trade it can be defined in harm of sh atomic number 18s. It givaes a degree of will power of a crocked or company and ultimately the sh beholders are the owners of the firm. Being shareholders they are most often expecting to produce a dividend, this is a remunerate for providing capital to the firm. fair play can likewise refer to the going between an assets current market value, the bill it could be exchange for and any debt or claim against it. A company leave al angiotensin converting enzyme issue shares to gain a form of capital without gaining any excess in terms of debt. The firm would be go across in the best interests of the shareholders by trying to maximise profit, this would incriminate that if at that coif was higher profits then the shareholders would more than presumable receive a higher dividend. However this can jumper triad 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, alternate Investment Market ( bring) and Ofex. The principal(prenominal) Market and AIM are the major parts of the London Stock Exchange. The briny Market is one of the most important and largest globally there are variant 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 shoot a line in this market. The A! IM was created for the small-medium sized companies, there are less(prenominal) 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 rejoin on Capital Employed22.6736.0742.6538.0644.16 profits 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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