P ppts clase 3 integración programa jóvenes pyme y capital semilla
Semianr ppts
-
Upload
imran-ahmed -
Category
Documents
-
view
238 -
download
0
Transcript of Semianr ppts
-
8/7/2019 Semianr ppts
1/17
I!!!
-
8/7/2019 Semianr ppts
2/17
financial
instruments!!
-
8/7/2019 Semianr ppts
3/17
Where will I findthem??
-
8/7/2019 Semianr ppts
4/17
What are
mygains..
-
8/7/2019 Semianr ppts
5/17
And
losses???
Venture
Capital??
-
8/7/2019 Semianr ppts
6/17
Instrumental financingInstrumental financing-sources, merits and demerits
Sunil
Susheel
Soni Rachel Oommen
-
8/7/2019 Semianr ppts
7/17
Financial Instruments.Financial Instruments.
y Afinancial instrument is either cash;
evidence of an ownership interest in an
entity; or a contractual right to receive, or
deliver, cash or another financial
instrument.
-
8/7/2019 Semianr ppts
8/17
Basic InstrumentsBasic Instruments
y Cash instruments are financial instruments whose value is determineddirectly by markets. They can be divided into securities, which are readilytransferable, and other cash instruments such as loans and deposits, whereboth borrower and lender have to agree on a transfer.
y Derivative instruments are financial instruments which derive their
value from the value and characteristics of one or more underlying entitysuch as anAsset an Index or an Interest Rate. They can be divided intoexchange-traded derivatives and over-the-counter (OTC) derivatives.
y Alternatively, financial instruments can be categorized by "asset class"depending on whether they are equity based (reflecting ownership of theissuing entity) or debt based (reflecting a loan the investor has made tothe issuing entity). If it is debt, it can be further categorised into short
term (less than one year) or long term.
y Foreign Exchange instruments and transactions are neither debt norequity based and belong in their ow
-
8/7/2019 Semianr ppts
9/17
Basic InstrumentsBasic Instruments
Financialinstruments
Cashinstruments
Securities Loans/deposits
Derivativeinstruments
Exchangetraded
derivativesOTC
derivatives
-
8/7/2019 Semianr ppts
10/17
Derivative instrumentsDerivative instruments
y They are financial instruments which
derive their value from the value and
characteristics of one or more underlying
entity such as anAsset an Index or an
Interest Rate.
y They can be divided into exchange-tradedderivatives and over-the-counter (OTC)
derivatives.
-
8/7/2019 Semianr ppts
11/17
Ownership securitiesOwnership securities
Equity shares
These are also termed as ordinaryshares or common stock.
The owners of these shares are the real
owners of the company.
-
8/7/2019 Semianr ppts
12/17
Merits of equity sharesMerits of equity shares
Permanent capital
Borrowing base
Dividend payment discretion
Ex:
In 1986, RIL had to cut dividend rate from
50% to 25%. However when the
companys performance increased next
year, dividend rate was also increased
-
8/7/2019 Semianr ppts
13/17
Demerits of equity shares.Demerits of equity shares.
Cost
Ownership dilution
Earnings dilution
Voting rights may lead to proxy fights.
-
8/7/2019 Semianr ppts
14/17
Preference SharesPreference Shares
Preference share capital represents a
hybrid form of financing
it partakes some characteristics of
equity and some attributes of debentures.
-
8/7/2019 Semianr ppts
15/17
Preference Shares..Preference Shares..
Merits Demerits
Riskless leverage advantage
Dividend postponability
Fixed dividend
Limited voting rights
Non-deductibility of
dividend
Commitment to pay
dividend
-
8/7/2019 Semianr ppts
16/17
Debt securitiesDebt securities
It is a long-term promissory note for
raising loan capital.
The firm promises to pay interest as
stipulated.
The fixed interest is called coupon rate.
An alternative form of debenture is called
bond.
-
8/7/2019 Semianr ppts
17/17
DebenturesDebentures
Merits Demerits
Less costly
No ownership dilution
Fixed payment of interest
Reduced real obligation
Obligatory payments
Financial risk
Cash outflows
Restricted covenents