Sample 1. Sample 2. Sample 3. Called Securities shall have the meaning set forth in Section 3 a. Called Securities has the meaning set forth in Section 5. Examples of Called Securities in a sentence In connection with any such arrangement for purchase and conversion, the Trustee as Paying Agent shall pay on or after the Redemption Date such amounts so deposited by the purchasers in exchange for Called Securities surrendered for redemption prior to the close of business on the Redemption Date and for all Called Securities surrendered after such Redemption Date.
Called Securities has the meaning stated in Section 7 a. Called Securities has the meaning given in Article Exempt Securities means 1 direct obligations of the U. Exempt Securities do not need to be pre-cleared. PE is represented as a multiple. When one refers to a stock was trading at 12x, it means the stocks is trading at twelve times its earnings. It is computed as market price per share upon book value per share. The book value is the accounting value per share, in the books of the company.
It represents the net worth capital plus reserves per share. If the market price of the stock were lower than the book value and the PBV is less than one, the stock may be undervalued. In a bullish market when prices move up rapidly, the PBV would drop, indicating rich valuation in the market. If the share was trading in the stock market for a price of Rs. The dividend declared by a company is a percentage of the face value of its shares. When the dividend received by an investor is compared to the market price of the share, it is called the dividend yield of the share.
A zero coupon bond does not pay any coupons during the term of the bond. The bond is issued at a discount to the face value, and redeemed at face value. The effective interest earned is the difference between face value and the discounted issue price.
A zero coupon bond with a long maturity is issued at a very big discount to the face value. Such bonds are also known as deep discount bonds. Floating rate bonds are instruments where the interest rate is not fixed, but re-set periodically with reference to a pre-decided benchmark rate. For instance, a company can issue a 5-year floating rate bond, with the rates being reset semi-annually at 50 basis points above the 1- year yield on central government securities.
Every six months, the 1-year benchmark rate on government securities is ascertained from the prevailing market prices. The coupon rate the company would pay for the next six months is calculated as this benchmark rate plus 50 basis points. Callable bonds allow the issuer to redeem the bonds prior to their original maturity date. Such bonds have a call option in the bond contract, which lets the issuer alter the tenor of the security.
For example, a year bond may be issued with call options at the end of the 5th year such as in the SBI bond illustration below.
Such options give issuers more flexibility in managing their debt capital. If interest rates decline, an issuer can redeem a callable bond and re-issue fresh bonds at a lower interest rate. A Puttable bond gives the investor the right to seek redemption from the issuer before the original maturity date. For example, a 7-year bond may have a put option at the end of the 5th year. If interest rates have risen, Puttable bonds give investors the ability to exit from low-coupon bonds and re-invest in higher coupon bonds.
A reverse repo is a lending transaction; a repo in the books of the borrower is a reverse repo in the books of the lender. Eligible collateral for repos and reverse repos are central and state government securities and select corporate bonds. The debt is fully secured against the collateral of government securities. CBLO is a standardized and traded repo. CDs are different from regular bank deposits because they involve creation of securities.
This makes the CD transferable before maturity. However, actual trading in CDs is extremely limited with most investors preferring to hold them to maturity. T-bills are issued for maturities of 91 days, days and days.
They are issued through an auction process managed by the RBI and listed soon after issue. Banks, mutual funds, insurance companies, provident funds, primary dealers and FIs bid in these auctions. Though CPs are required to have a credit rating, they are unsecured corporate loans with a limited secondary market. They can be issued for various maturities of up to days, but the day CP is the most popular. A rupee in hand today is more valuable than a rupee obtained in future.
For example, let us compare receiving Rs. The value of currently available funds over funds received in the future is due to the return that can be earned by investing current funds. If cash flows that are receivable at different points in time have to be compared, the time value of money has to be taken into account. The bond price is the present value of cash inflows from the bond, discounted by the market yield.
So bond price, coupon rate and yield are all connected. Given any two, the third can be easily calculated. In the bond markets, it is the price of a bond that is known and quoted. Information on coupon rate and redemption are also available. Given the bond price and its coupon, the yield can be computed. If the investor purchases the bond at a price lower than the face value, then he has acquired it at a price cheaper than the originally issued price.
As a result yield will be higher than the coupon rate. If the investor purchases the bond at a price higher than the face value, then he has acquired it at a higher price than the original face value, so his yield will be lower than the coupon rate. There is an inverse relationship between yield and price of a bond.
As bond price falls, the yield to the investor goes up. This is because as the discounting rate or yield is increased, the final present value price reduces. The rate which equates the present value of future cash flows from a bond with the current price of the bond is called the Yield to Maturity YTM of the bond. As bond price changes, so does the YTM. Thus, YTM is the discount rate implied in the bond value at a point in time. YTM is a popular and widely used method for computing the return on a bond investment.
Yield quotations in the debt market usually refer to YTM. When a company makes an IPO the shares of the company becomes widely held and there is a change in the shareholding pattern. The shares which were privately held by promoters are now held by retail investors, institutions, promoters etc. An IPO can either be a fresh issue of shares by the company or it can be an offer for sale to the public by any of the existing shareholders, such as the promoters or financial institutions. New shares are issued by the company to public investors.
The issued share capital of the company increases. Also good to know about bonds: Bond prices move in the opposite direction of interest rates, which means that when interest rates rise, bond prices typically fall, and vice versa. Bottom line: The next time you hear the word securities, no need to get confused. Just think of them as a fancier way of saying stocks and bonds. No investment strategy can guarantee a profit or protect against loss.
Which specific transactions are subject to application of the Tender Offer regulation? What is the treatment for purchases combining transactions at and outside of Financial Instruments Exchange Markets?
For example, in cases where the purchaser has purchased a volume of Share Certificates, etc. Holding Rate to more than one-third, would it be sufficient to conduct the additional purchase through a Tender Offer? What is the treatment for the case where another person makes purchases during a period when a Tender Offer is conducted?
In what kind of cases is it possible to change the Terms of Purchase, etc. In what kind of cases is it possible to withdraw a Tender Offer? What kind of matters should be included in the statement of the position of the Subject Company of a Tender Offer? What is the arrangement for the Subject Company of a Tender Offer to ask the Tender Offeror questions, and how many opportunities to ask questions are available?
How should a Tender Offeror respond when it receives questions from the Subject Company? In what kind of cases is the Tender Offeror obligated to purchase all tendered shares? What are the specific time limits and frequency of exceptional reporting? What is the treatment for the case of conducting transactions that result in the Holding Ratio of Share Certificates, etc. What is the treatment for the case where the Share Certificates, etc.
Are investment securities issued by investment corporations subject to the large shareholding reporting system? Must the disclosure documents under the large shareholding reporting system be submitted through the electronic disclosure system EDINET? What kind of operator is a Financial Instruments Business Operator? What is Securities-Related Business?
Why is such business defined under the FIEA? Is a separate registration procedure required for each category of business of Financial Instruments Business Operators? What are the requirements for refusal of registration of Financial Instruments Business Operators? What is the scope of employees that are subject to examination of the requirements for refusal of registration of Financial Instruments Business Operators?
What are the contents of examination standards with regard to the personnel structure requirement for Financial Instruments Business Operators? What are the standards for the minimum capital and Net Assets regulations for Financial Instruments Business Operators?
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