Business Report Essay Example | Topics and Well Written Essays - 3750 words

Business Report - Essay Example There are restrictions on disposals of securities and sales are on hold for the lock-in periods that differ but are for long periods. Provisions and specific conditions have been examined for US, Australian and Indian markets and a comparative study reveals a common thread running between them base of stable politics, liberal economic outlook and good legal systems. There are some differences but of local nature due to unequal maturity. Financial Markets all over the world have been formed to enable companies to raise capital for their needs and to allow investors to invest in companies of their choice. Advanced Financial markets have expanded on this simple premise that has expanded with time and maturity. The concept of an investor today does not mean just the individuals who have wealth that they would like to invest. Indeed the individual investor today stands marginalized with the emergence of Institutional Investors No doubt these Institutions are themselves comprised of a huge number of individual investors, who invest in them by choice (Mutual Funds) or by law (Pension Funds). But the control of their money does not lie in the hands of the individual but in the hands of the few who are chosen as directors. Raising capital now requires a different approach. Earlier the companies had to woo the individuals to attract them to their issues. Now they have to attract the big investors as the amount of capital required is also getting to be huge. The companies want to play it safe by ensuring that a large amount of their capital needs are covered by private placements prior to their going for a public issue. One of the primary roles of the Stock Exchange Authorities is to safeguard the interest of the investing public. Although rules may differ from one country to another, the common feature is that they require a very comprehensive disclosure from the companies on their financial information. They are asked not only to