...Case Study: Raising Capital in Switzerland Angel PinaHardin ACCU 615 July 10, 2013 Brandman University Case Study: Raising Capital in Switzerland E-Centives Inc. is a company based in Bethesda, Maryland with offices in Redwood City, New York and Los Angeles. The company is a leading on-line direct marketing company 4.4--million account members (Choi & Meek, 2011). The organization wants to expand into foreign markets and considers the Swiss Exchange to help meet its financial needs. Introduction This paper will discuss the case study of organization e-Centives Inc. In particular, it will discuss the factors that are relevant to e-Centives Inc.’s decision to raise capital and list on the Swiss Exchange’s New Market. It will also discuss why e-Centives chose not to raise public equity in the United States and their decision not to raise capital on the U. S. Stock exchange as well as the advantages and disadvantages of using the U. S Generally Accepted Accounting Principles (GAAP). Also discussed will be the requirement for e-Centives Inc. to prepare its financial statements using Swiss accounting standards as well as the reporting requirements and whether or not e-Centives met those requirements. Factors to the Swiss Exchange Many factors contributed to e-Centives Inc.’s decision to enter the Swiss Exchange instead of the U. S Stock Exchange. These factors include ease and availability of capital and investors, reputation of the exchange, and corporate profile...
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...attract equity / quasi equity investments. At present, UCBs have limited avenues for raising such funds and even their share capital can be withdrawn. Against this backdrop, an announcement was made in the Annual Policy Statement for the year 2006-07 to constitute a Working Group to examine the issue of share capital of UCBs and identify alternate instruments / avenues for augmenting the capital funds of UCBs. Accordingly, a Working Group was constituted under the Chairmanship of Shri N.S. Vishwanathan, Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India. 2. Methodology The Group deliberated on the various issues relating to its terms of reference on the basis of presentations made by its members. It also met Chairmen/ CEOs of a few medium/ large UCBs. The areas deliberated included international practices and structures for issue of bonds by cooperatives, adaptability of the provisions of Indian Companies Act, 1956 for issue of preference shares, State Government perspective on the issues involved and provisions of select State Cooperative Societies Acts and Multi State Cooperative Societies Act, 2002 pertaining to issuance of shares and debentures including their transferability, SEBI Act, 1992 and Securities Contract Regulation Act, 1956 (SCRA). 3. Findings The Group observed that a large number of UCBs are short of the prescribed regulatory capital. Out of 217 UCBs...
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... | | | | | The world is a remarkable market of consumers where the stakes of conducting business are volatile and sometimes unpredictable. Consumers taste preferences, trends, and buying power will shift over time dependent upon factors of their environment. Entrepreneurs can undercover a hidden niche and exploit its’ newness to consumers with one creative idea and use of statistical information. Heat Seekers proactively took the time to strategically establish the company’s overall strengths, weakness, opportunities, and potential threats to reaching success. Basing the focus on every phase of conducting business globally and what things could alter the progress of entering foreign or, domestic markets. A clear concise business plan and complete industry risk analysis are the core components of what makes a successfully funded venture. A futuristic point of view on what lies ahead is not an impossible task when you have resources available like the internet to determine the difficulty level. A...
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...currencies held in its banks, plus special drawing rights (SDR) and exchange reserve balances with the International Monetary Fund (IMF). Foreign Exchange Reserves Sovereign Bonds Foreign Currency Deposits Gold Deposits Special Drawing Rights IMF Drawing Rights Foreign Exchange Reserves Foreign Exchange Reserves Outflows Repatriation of investments and profits Payment of Loans Inflows Bilateral Aids Loans Payment of Interest Investments Payment for Imports Payment from Exports Foreign Exchange Reserves- Change in Treatment Formerly consisted of only gold and Silver After Breton Woods Agreement , US dollar also became part of foreign currency 1944-1968 USD was convertible to gold by Federal Reserve System 1968-1973 Only Central Bank could convert reserves to gold Post 1973 Reserve can’t be converted to gold Impact of Foreign Exchange By means of foreign exchange reserve country can control the Exchange rate To make domestic currency more stable • Country can purchase domestic bonds using foreign reserves To reduce the value of domestic currency • Can purchase foreign notes by that foreign reserves FOREIGN EXCHANGE RESERVE MANAGEMENT Foreign Exchange Reserve Management • To maintain reserves sufficient enough to cover imports for 3 – 4 months ideally, to absorb short-term shocks in the foreign exchange market Import Cover Liquidity • The assets in FER need to be sufficiently liquid for the RBI to...
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...raise capital with their projects based in Macau. The reason Melco is looking for new ways of funding is due to their current project on two casino resorts in Macau being stopped due to lack of funds. It is believed that US$1.6 billion is what is needed to complete the construction on the casinos however a portion of that, US$350 million is what is needed to get the project back underway. The strategy that is chosen needs to be versatile enough that not only will it help in restarting the casino projects but it also needs to be flexible enough for long term funding. Key Alternatives: Melco has various options in terms of financing their construction project with possibilities of looking at funding in both the domestic markets within Hong Kong, as well has being able to source funding from international markets such as the US. To get a better idea of which market would be the most suitable for Melco the various possibilities need to be compared as well as taking other factors internal and external factors into account. MCEL has stated that raising capital through equity would not be the worst option and they are open to this, provided the joint venture remains evenly split between PBL and Melco whilst also not relinquishing enough shares in order to remain majority shareholders. Domestic possibilities: One domestic possibility would be by issuing corporate bonds in Hong Kong, which has 71 of the 100 world’s largest banks situated there. The Hong Kong debt market is very...
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...m------------------------------------------------- Liberalization, Privatization and Globalization in India Overall Rating: [2/5]Total Votes [ 13 ] | Rate this page:12345 | | The economy of India had undergone significant policy shifts in the beginning of the 1990s. This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model. The primary objective of this model was to make the economy of the seventh largest country in the world the fastest developing economy in the globe with capabilities that help it match up with the biggest economies of the world. The chain of reforms that took place with regards to business, manufacturing, and financial industries targeted at lifting the economy of the country to a more proficient level. These economic reforms had influenced the overall economic growth of the country in a significant manner. Liberalization Liberalization refers to the slackening of government regulations. The economic liberalization in India denotes the continuing financial reforms which began since July 24, 1991. Privatization and Globalization Privatization refers to the participation of private entities in businesses and services and transfer of ownership from the public sector (or government) to the private sector as well. Globalization stands for the consolidation of the various economies of the world. ------------------------------------------------- LPG and the Economic Reform...
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...Chapter 1 Introduction Discussion Questions 1. In the domestic case, accounting is an information service that provides financial information about a domestic entity to domestic users of that information. International accounting is distinctive in that the entity being reported on is either a multinational company with operations and transactions that transcend national boundaries or involves an entity with reporting obligations to readers who are located outside the reporting entity’s country of domicile. 2. Advantage: Some might argue that measurement, disclosure, and external auditing are three distinct (although related) processes, involving different members of the company. For example, corporate attorneys often are involved in disclosure issues, but seldom intervene in measurement issues. The Board of Directors works with the external auditors but not necessarily with the comptroller s office. Thus, discussion of accounting requirements and voluntary accounting choices in different jurisdictions is simplified by focusing on the three components of accounting. Disadvantage: measurement, disclosure and auditing are interdependent, and should not be viewed in isolation of one another. A company choosing to disclose as little as possible, for example, may use accounting measurement approaches that reduce the information content of financial statements, and select an external auditor who will be relatively lenient in enforcing accounting requirements. One alternative...
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...exchange with the ticker BID and price of 18,700 VND/share and the market cap of 52.6 trillion VND. BIDV is the top six stock of Vnindex. BIDV is the largest bank listed on the stock exchange in Viet Nam in terms of total assets, lending, and deposits and BIDV remains the second largest bank in terms of branch network… After raising capital, BIDV will have the largest assets and equity among Vietnam commercial banks, thereby becoming the most attractive partner to foreign investors, investment funds including ETFs. BIDV’s have the biggest customer base of 100,000 firms includes largest enterprises in Vietnam. When the economy recovers, BIDV take the best advantage of this strong customer base to grow faster than other banks. BIDV will sell a 20% stakes for strategic partners with the support of Morgan Stanley as an advisor. In addition, BIDV may sell 5 -10% stakes for other financial investors. BIDV supports the international collaboration, especially with Japan. BIDV seizes opportunities to grow globally by expanding international collaboration and conducting businesses across the border. In 2013, BIDV signed memoranda with two large banks in Japan, Shinki Central Bank (total assets of USD 327 billion) and Sumitomo Mitsui Trust Bank (total assets of USD 361 billion) on providing services and supporting Japan clients in Vietnam. In 2014, BIDV will hold a customer conference in Vietnam and Japan on improving international cooperations and developing system of Japan customers. Strong...
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...world economic growth were to pick up and boost U.S. exports, U.S. imports would have to slow dramatically for the gap to narrow. To shrink the trade deficit significantly, say, over a two-year period, exports would have to grow twice as fast as they did in the 1990s, when growth averaged 7.5 percent a year, and the growth rate of imports would have to be halved, from 11 percent to 51/2 percent a year. Moreover, following twenty years as a net recipient of capital inflows, the United States will soon be confronted with much larger service payments. At some point, either the United States' negative net international investment position and the associated servicing costs will become too great a burden on the U.S. economy or, more likely, global investors will decide that U.S. assets account for a big enough share of their portfolios and so will stop acquiring more of them. At that point, asset prices, including interest rates and the exchange value of the dollar, will adjust, reflecting the change of sentiment in the markets. A change in the value of the dollar alone would narrow the trade gap for a while,...
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...secretariat from the very first day of its inception. CSE was formally opened by then Hon'ble Prime Minister of Bangladesh on November 4, 1995.” MISSION: The mission of the CSE is “to create on effective, efficient and transparent market of international standard to save and invest in Bangladesh in order to facilitate the competent entrepreneur to raise capital and accelerate industrial growth for overall benefit of the economy.” The Chittagong Stock Exchange believes that a dynamic, automated, transparent stock exchange is needed in Bangladesh. It works towards an effective, efficient and transparent market of international standard to serve and invest in Bangladesh in order to facilitate the competent entrepreneurs to raise capital and accelerate industrial growth for overall benefit of the economy and keep pace with the global advancements. VISION: The visions of CSE are as follows: a) To develop a strong platform for raising capital b) To provide an investment opportunities for the investor c) To develop a corporate culture through mandatory corporate membership d) To develop a transparent market ensuring investors interest e) To expand the capital market f) To collect, preserve and disseminate data and information on stock market g) To provide a fully automated trading, clearing and settlement system to ensure quick, easy, accurate and easily accessible to all transactions h) To make interest about Bangladesh stock...
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...Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF decided to “take advantage” of cross-border listing. On March 11, 2009 the company announced its intend to list its common shares on NYSE Euronext Paris. On March 31 that same year, European regulators approved the listing and the company started trading its shares in April 6, 2009. The company’s objective was...
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...The purpose of this paper is to discuss the U.S. financial markets, the role of investment banker and other sources of capital that is available to corporations. The paper will also discuss how a corporation raises short term and long term capital through this the U.S. financial system. When considering finance, it is understood that it can be used in a number of ways, whether it is used by individuals for personal finance, by the government in terms of public finance or for business in regards to corporate financing. The role of the U.S. financial system plays an important part in corporations raising capital in that the financial system provides several avenues for a firm to gather both short term and long term capital. Monetary institutions have a distinct purpose in the U.S. economy because they provide the resource for corporations to access financial support to raise capital for investment prospects. There are different varieties of financial institutions that supply financial assistance in the United States which range from banks that lend money commercially to companies that are responsible for securities, and then there are the companies that are involved in finance. Such institutions support certain markets and fortify the economic health of the U.S. by transitioning funds among providers of capital and those in need of said capital. A corporation can choose to be private or public, private corporations are generally owned by the CEO meaning the CEO owns 100% of the...
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...that the concept of ‘foreign’ has not permeated. This term, connoting modernization, international brands and acquisitions by MNCs in popular imagination, has acquired renewed significance after the reforms initiated by the Indian Government in 1991. Generally speaking FDI refers to capital inflows from abroad that invest in the production capacity of the economy and are “usually preferred over other forms of external finance because they are non-debt creating, non-volatile and their returns depend on the performance of the projects financed by the investors. FDI also facilitates international trade and transfer of knowledge, skills and technology. “Foreign direct investment is of growing importance to global economic growth. This Paper mainly focus on the Foreign Direct Investment in the Insurance sector and its significance in insurance sector in India . The Insurance sector in India has a great potential even during the downtrend and FDI flow is expected to rise in the mere future. This paper attempt to current status of fdi in insurance sector in India. Currently, only 26% of FDIs is permitted in insurance sector. The total insurance business would touch US$ 60 billion size. If insurance sector is opened up to an extent of 49% for FDIs, it is expected that FDI’s contribution to insurance business would touch nearly US$ 2 billion. *Lecturer in Commerce, GNG College, Yamuna Nagar International Journal of Research in Economics & Social Sciences http://www.euroasiapub.org 65 ...
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...contribution is rising. In service sector nearly 22% of the population of the nation is contributing around 55% of GDP. The reason for high productivity can be attributed to only intangibility. The financial statements of the service sector enterprises do not depict the intangibles – because of difficulty in identification, measurement and valuation. The growth of the Service Sector may be slowed down if the service firms which are mostly knowledge driven are not growing and the two major obstacles in the growth of knowledge driven firms are (a) Finance and (b) Coverage of risk. Since the methodologies have not been developed for valuation of the intellectual properties, there are no reported resources on the basis of which sources for raising the resources can be approached and also the assets can be insured. While addressing a gathering of students, an eminent speaker has said “Help the country by investing in yourself.” He emphasised that by investing in self one can create intangibles (intellectual property) which can bring tangible development of the nation. But question is how to measure the intangible? The measurement of intellectual...
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...Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF decided to “take advantage” of cross-border listing. On March 11, 2009 the company announced its intend to list its common shares on NYSE Euronext Paris. On March 31 that same year, European regulators approved the listing and the company started trading its shares in April 6, 2009. The company’s objective was...
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