Initial public Offering
🖊 occurs when company issues new share to the investors
🖊 company appoint investment bank as a middleman in issuing new share
🖊 before issuing must get approval from Securities Commission

Sales share to Company
🖊 the company sell new share to their employee
🖊 company will sell their share at discount price
🖊 offer to their employee to have company's equity
🖊 this share are not allowed to sell at specific time

Private Placement
🖊 the company sell their securities directly to their investor
🖊 does not involve middlemen
🖊 this shares not allowed to sell at specific time

Right Offering
🖊 company sell new share to their existing shareholder
🖊 sell share through pre-emptive right
🖊 will sell share at lower price from market price

Secondary Market
🖊 deal with previous securities issued by the company to investor
🖊 investor sell their securities using secondary market
🖊 example secondary market Bursa Malaysia

where bond issuer interested to raise funds, then bond issuer agrees to pay bond stated capital plus coupon payment to bond holder upon maturity

Bond is a debt instrument issued for more than one year

Bond is a security because it can publicly traded in the open market

Bond Indenture
🖊 a legal agreement between firm issuing the bond and bond holder

Coupon payment
🖊 fixed coupon rate known as interest

Maturity date
🖊 represent the date which the bond matures

Risk of default
🖊 the inability of bond issuer to fulfill the financial obligation to bondholder

Straight bond
🖊 fixed coupon rate
🖊 maturity o fixed date
🖊 tend to carry high coupon rate

Convertible bond
🖊 holder has right to convert bond into issuer stock
🖊 lower coupon rate

Zero coupon bond
🖊 no periodic coupon paid during life of the bond
🖊 normally sold at discount

Mortgage bond
🖊 require the issuer to pledge certain real assets as security for bond

hybrid of debt and equity and have attributes of both securities

the second party to claim company capital after bond holder

the stock issues fixed dividend

🖊 not normally given voice in management
🖊 in certain way may have voting right

common stockholder is the last party to claim over company asset

dividend is not fixed and not compulsory for company to pay dividend

existing shareholder have right to maintain their ownership

Blue-Chip stock
🖊 high quality stock
🖊 issued by well establish company
🖊 provide reasonable dividend
🖊 example Celcom

Growth Stock
🖊 issued by small growing company
🖊 usually pay little or no dividend

Speculative Stock
🖊 issued by highly unstable company
🖊 usually pay little or no dividend
🖊 used to seek capital gain

Defensive stock
🖊 price of stock maintain and do well
🖊 less affected by downswing in business cycle
🖊 include shares of public utilities