Those valuable stocks that only grow by themselves

Theory and practice of international accounting and reporting. Stock exchanges around the world are currently undergoing a period of rapid and profound change. In the world economy, the structure of the global capital market has been formed, which distinguishes two types of stock exchanges: global stock exchanges and regional stock exchanges. Each type of exchange has its own market segmentation and economic specialization. At the same time, in every type of exchange, the competition between investors and issuers is also intensifying. Global exchanges are exchanges that dominate economic communities. Global exchanges are characterized by the highest capital and trading volume and the highest liquidity. Global exchanges trade the securities and derivatives of the most famous companies, as well as the depositary receipts and secondary placements of foreign companies.

Global exchange customers come from local, regional and foreign investors from all over the world. Examples of global exchanges are the New York Stock Exchange and the London Stock Exchange. In Asia, the Tokyo Stock Exchange has the status of a global exchange. The American electronic exchange Nasdaq is trying to achieve a similar status. Global stock exchanges provide the most effective capital acquisition channels for large institutional investors. Russian companies are listed on the New York and London stock exchanges. The company plans to enter the Tokyo Stock Exchange. Unlike European investors, many American institutional investors only buy securities from companies listed in the United States. In addition, European stock exchanges are dominated by institutional investors, while retail investors play an important role in the US stock market, which collectively control a large amount of capital.
Provide the most liquid and highly regulated market for large organizations. Listing on the exchange allows the company to obtain external funds, increase the liquidity of stocks, expand the retail and institutional investor base, facilitate the merger and acquisition process, and increase the recognition of company names, products and services. Representatives of the New York Stock Exchange are not only concerned with the quantitative and quality standards that foreign companies must meet, but also on the company's strategic importance to the US national interest, the company's position in its industry, and the development prospects of the industry and the company's market. The American Depositary Receipts of Russian companies such as those are deposited on the New York Stock Exchange.
Securities transactions are carried out from many remote computer terminals. More than 5001 companies are registered on the exchange. Traditionally, Nasdaq has been regarded as a trading platform for the high-tech and telecommunications industries. However, the situation has now changed: 29% of listed companies belong to the information technology industry, nearly 41% belong to the financial and healthcare industry, and less than 1% belong to telecommunications companies. Compared with the New York Stock Exchange, one of the advantages of Nasdaq is that it is an electronic exchange. Its transaction speed is 31% faster than the New York Stock Exchange. Therefore, investors face less risk of price changes when trading. Applicable to issuers with large scale and good reputation. The exchange contains the stocks of many well-known companies in the technical field, such as:, etc. This system is suitable for smaller well-known companies. In addition, there are two electronic systems in the system, which only stock market professionals can use. An electronic system through which broker-dealers who buy and sell stocks in small and little-known companies are connected. Founded in 1989. Trade securities of countries, regions and foreign companies. Selected by companies that do not meet the requirements for listing on the national stock exchange. Currently, more than 62,000 securities are traded on over-the-counter trading platforms, of which 413 are other securities issued by foreign issuers. Most of the Russian companies are placed on. Both US and foreign issuers work in real time. A large proportion of Russian companies fall into the above categories and conduct transactions in this system. It has been in operation since 1991, bringing together qualified institutional investors. Provide opportunities for both the initial placement of private securities under Rule 145 and the secondary trading of these securities. It plans to attract companies in the fuel and energy sectors as well as technology and telecommunications companies. First, Nasdaq seeks to attract companies that export or are likely to export their products to the United States.

London Stock Exchange, its securities are listed and entered the capital market.

Should be in the hands of independent individuals; the minimum issuance size must be at least £710,000 (approximately US$1.01 million). Designed especially for small and fast-growing companies. Their total market value exceeds 42.1 billion pounds. In addition, in the past two years, a large number of companies have appeared on the stock exchange: as early as 2013, there were 712 companies with a total capital of £14.7 billion registered on. These unprecedented growth rates of stock exchanges are due to the increasing attractiveness of institutional investors that are characterized by long-term investment methods and possess large amounts of capital. According to a poll conducted by "Institutional Investor" magazine, in 2016, 41.9% of the shares were controlled by institutional investors. As a result, the total capital invested by the Shanghai institutions exceeds 19.1 billion pounds-more than the capital of the entire market two years ago. Interestingly, in terms of investment value, the leader is the Canadian Investment Fund &. Other major investors include Fidelity, Almis, Schroder Investment Management, Merrill Lynch, UBS, Goldman Sachs, Prudential and other major financial institutions. For example, in 2016, Fidelity invested in 123 companies, 95 companies, Goldman Sachs and Merrill Lynch in 47 companies, and 47 companies.
In the past year, the number of financial industry companies listed on stocks has greatly increased. In 2016, a total of 201 companies in the financial industry participated, and the entire industry accounted for 12% of total capital.
There is no requirement for the time period for receiving positive income.

The listing office that submitted the listing documents. Because it is designed for emerging companies and growing companies, the rules for conducting transactions are relatively short and far less stringent than those of major sites. This table summarizes the main differences in company requirements between the main London Stock Exchange and the alternative London Stock Exchange.

Restrictions on financial instrument advertising in accordance with the 2010 Financial Services and Markets Act

If the company is registered in another country, it must comply with the legal requirements of the country of registration. No matter which country the company comes from or the industry in which it operates, you can join it.
It contains all the information needed by investors.

The company must pay an exchange fee based on current tariffs. In addition to the broker, the company must also choose a legal counsel, an auditor (reporting accountant) and an investor relations consultant (public/investor relations consultant) when entering the exchange.

It is an exchange that serves a region and dominates the local economic system. Unlike global exchanges, regional exchanges will not try to provide all types of services and financial products for all types of companies, intermediaries and investors. Regional exchanges specialize in a limited number of products, markets and investors. The customers of such exchanges are mainly regional investors, as well as some foreign investors, who will benefit from the experience and knowledge accumulated by regional exchanges about investment opportunities in the region. Many local investors prefer to invest in securities listed on regional exchanges, so they are familiar with it. Some regional exchanges develop trade specialization in certain economic fields. For example, the Stockholm and Helsinki Stock Exchanges specialize in telecommunications, and the Oslo Stock Exchange specializes in shipping.
Regional exchanges provide opportunities for regional retail and institutional investors. Among European regional exchanges, the Frankfurt Stock Exchange is most interested in Russian companies because the depositary receipts of Russian companies are traded here. Among other European regional exchanges, the Luxembourg Stock Exchange became a centralized issuing center for depositary receipts of Taiwanese technology companies in 1991, and Russian issuers may be interested in this. Recently, the Vienna Stock Exchange has increasingly played the role of a major regional exchange in Central Europe, so Russian companies related to the region may also be interested in this. For companies in the Northwest Territories, the Baltic Unified Stock Exchange may be of interest. It will include Stockholm (Swedish Depository Receipts, the place of circulation of special drawing rights), Copenhagen, Helsinki, Vilnius, Riga and Tallinn’s trading floor was merged into one system.

The EU directives are essential to creating a single European financial services market.
The directive defines uniform conditions for listing on the exchange, uniform requirements for disclosure of financial information, and uniform requirements for drafting company prospectuses. The main feature of the directive is that the company's prospectus will become its own prospectus within the EU. Companies from non-EU countries that plan to publicly issue shares and convertible bonds or go public will have to choose. After the prospectus is registered and listed in securities, the company does not need to re-register the prospectus to place its securities on any country and any EU exchange. In addition, the company will be required to only comply with securities laws and not the laws of the country where securities are placed or exchanged. However, there is only one choice. According to the directive, the company will automatically become the first country where a registered prospectus or securities are allowed to be traded on an exchange, and the company will not be able to change it without delisting all of its securities in the future.
The directive will have an important impact on the placement strategy of Russian companies’ securities on EU exchanges. When preparing for a company’s stock placement, it should be remembered that the main goal is not the placement itself, but to raise funds on the most favorable terms. In this regard, the company is directly interested in the price at which investors will purchase its shares. The value of the company and the value of the stock depends on market conditions and other factors, some of which are related to any business, while others may be specific to a particular industry. Generally, investors give higher ratings to companies that have a clear strategy, transparent structure, strong market position, growth and stable cash flow. Before its shares were listed on the stock exchange, the company, with the help of consultants, set the expected price range for the sale of shares. KPMG analyzed the recent initial public offerings of Russian companies and studied the circumstances under which the actual offering price is close to the upper limit of the announced range and the actual selling price of the shares does not even reach the lower limit.
Interestingly, certain factors that are usually considered when preparing an IPO may not work in some cases. Usually, host country companies believe that very high growth rates will never be actively welcomed by investors, because the latter cannot ensure that they will not expand rapidly at the expense of the efficiency of their main business processes. Therefore, it is important to demonstrate the quality and manageability of growth. Practice shows that what matters is not growth itself, but growth in compliance or non-compliance with the statement. For example, when the stock quotes of two companies with roughly the same sales growth rate move in completely opposite directions, this situation may occur-the stock price of the company that announces the lower growth rate increases, and the future growth rate is overestimated. The company's stock fell. The reverse is also true: Deteriorating performance does not always have a proportional negative impact on stock prices. Investors are ready to forgive the deterioration of the external environment, but their reaction to keeping their promises and corporate scandals has been extremely negative. If securities are allowed to be traded on the market, they will automatically fall into the category of the Frankfurt Stock Exchange. It is not only Germany but also the largest regional exchange in Europe. It has a traditional trading floor and has used the ® electronic trading system since 1998. At present, both in the trading floor or in the electronic trading system, Russian companies are circulating. In the traditional section of the exchange, 34 of the largest are listed, such as. There are already 19 Russian companies listed and traded on the electronic trading system.

The Frankfurt Stock Exchange is divided into one of two parts: General Standards and Main Standards. For these two parts of the transaction, both stocks and stocks of foreign companies can be accepted. According to the Securities Exchange Act, companies must be allowed to trade on the official market to be listed in the common standard category of stocks or certificates. To allow shares to circulate on it, the company must exist for at least three years, the number of shares must be at least 10,000 shares, of which at least 26% must be freely tradable. The expected value of the listed shares must be at least 1.26 million euros. The company must provide a prospectus in English and German, which contains sufficient information for investors to correctly assess the value of the company’s securities. The prospectus must also include the financial statements for the most recent three fiscal years and the company’s management report for the most recent year. Market companies must publish regular annual reports and interim semi-annual reports. If securities are allowed to be traded on the market, they will automatically fall into the category of the Frankfurt Stock Exchange. To join a more prestigious company, it must meet other conditions for regular disclosure of information, namely: publishing quarterly reports in accordance with international standards (or ), financial calendars, and holding at least one financial analyst meeting a year. Trading on the stocks, certificates and other securities of foreign companies that do not meet the requirements or the market. The entry requirements for securities are less stringent than the official market and the regulated market. To be accepted, the company must provide accurate information about its securities and the exchange on which their initial pricing is based. If the securities are not traded on the stock exchange, the company must provide more detailed information about itself. What to communicate with investors-future prospects or final profits? In the application solution "1: Enterprise Management 2." By continuing to browse the site, you agree. Stock Multiples: How to Tell When a Stock is Cheap/Expensive