The Role and Function of Stock Market - Research Paper Example

The Role and Function of Stock Market Atta ur Rehman Academia Research 19 November 2007 Advantages of Stock Market for Corporations and Investors The stock market is one of the most significant and strong source for corporation and investors to enhance their money and business. Stock markets allow corporations to take their business into community and increase extra capital for spreading out. For example, a takeover accord through the stock market is one of the easiest and widespread ways for corporations to develop its business by acquisition. One of the attractive features is that it provides a better opportunity to investors to sell their securities easily. Investment in stock market is much better investment as compared to the other investments such as real estate. For each transaction, stock market plays it role as a defrayal-house which means that it assembles and distributes the shares with assurance of imbursement to the customers. Therefore, the illegal influence of counterparty on the transaction is eliminated to an investment whether invested by an investor or corporation. The smooth execution of stock markets activities not only helps profitable development at lower costs but also project the production of industry as well as employment. Moreover, the inoperative deposits with banks are used for cultivation of various economic sectors such as agriculture, commerce and trade. Thus, by playing its vital role in promoting economic system, its also increases the societal prosperity in the state. Administrative Structure of Stock Markets Generally the stock markets consist of board of directors, chief executive officer (CEO), deputy chief executive officer (DCEO) and heads and staff of departments and sections. The general administrative structure of stock markets is as follows: (a) Listing and Operations Department. This department carries out the following tasks: (i) This is the department which is generally responsible for necessary documentation and membership. It also examines listing applications submitted to the stock market. (ii) This department manages trading conferences, monitors executed procedures and inspect trading systems. (iii) It also suggests most suitable solutions to business problems and prepares trading announcements. Moreover, it is responsible to ensure that these reports must reach to the concerned parties, trading system operators and conducts the required investigation to license them to function. (iv) It takes actions on the execution of the applicable listing instructions by security issuers. (b) Surveillance and Inspection Department. This Department undertakes the following tasks: (i) Executed trading operations are surveiled on the stock markets to ensure their agreement with valid legislations. (ii) It scrutinizes members of stock exchange and registers them to ensure their conformity with rules and regulations of the market. (iii) It receives, examines and recommends appropriate solutions to investors' complaints. (c) Legal Department. Role and task of this department is as follows: (i) This department issues legal procedures and advices to all sections of stock market regarding outgoing and incoming correspondence. (ii) All the agreements and contracts are reviewed by this department. (iii) It acts upon court decisions passed related to securities. Also it follows up the cases raised by stock market or against it. (d) Research and International Relations Department. This Department has the following tasks: (i) It collects the data and information from various departments of the stock market regarding economic and financial studies and then research on it to conclude statistical facts and figures (ii) It prepares official press releases and computes indexes. (iii) For the public awareness, this department arranges conferences, visits and training workshops. (e) IT Department. This Department does the following tasks: (i) IT department is responsible for the protection, maintenance and updating of software and hardware systems in stock market. (ii) It follows up on department requirements in terms of software and hardware, undertakes programming and analysis, and trains personnel. (iii) It is in charge of linkage with the software of other relevant institutions. (iv) It manages projects and networks. (f) Administration and Finance Department. This Department shall undertake the following tasks: (i) It is in charge of personnel affairs and training. (ii) It performs financial and accounting tasks and prepares financial reports. (iii) It purchases, oversees, secures and conducts maintenance over supplies needed by the ASE. (iv) It follows up on the ASE's public relations. Technical Structure of London Stock Exchange As for as technical structure is concerned, London stock exchange is broken into Alternative Investment Market, EDX London Limited and an independent FTSE group. The Alternative Investment Market (AIM) It is a sub-market of the London Stock Market. Here smaller companies and corporations float their shares in a flexible regulatory system which is generally available in the Main Market. The Alternative Investment Market (AIM) was launched in 1995 and so for it has risen more or less 24 billion for more than 2,200 companies and corporations. In the last few years, significant number of companies has been transferred from the Main Market to the AIM. One of biggest reason is the AIM noteworthy tax compensations for investors and a lesser amount of regulatory load on the companies. In 2005, 40 companies moved straightforwardly from the Main Market to the AIM, while during the same year only two companies moved from the AIM to the Main Market. The AIM has also started to become an international exchange as in 2005 as over 270 overseas companies had been admitted to the Alternative Investment Market. EDX London Ltd This is an exchange of derivatives controlled by the London Stock Exchange. This market was launched in 2003 to unite the proficiency and liquidity of LSE with highly developed derivatives technology offered by OMX AB. Its members have options to trade either on single stocks or standardized indices. This trading happens globally with the association of Stockholm, Copenhagen and Oslo Stock Exchanges. Currently there are almost 150 contracts available. FTSE Group FTSE group is a self-regulating British provider group of stock market indices. This group maneuvers the famous FTSE 100 Index and FTSE 250Index. Also it controls over 60,000 other indices including 600 real time indices. FTSE is an abbreviation of Financial Times Stock Exchange and actually a joint venture between the Financial Times and the Stock Exchange. The FTSE was formed in 1962 for FTSE All Share-Index. In 1982 the FTSE 100 was established which represents about 80 percent value of the London Stock Exchange. In 1995 FTSE Group converted into an independent company. It started its operations internationally in 1999 from New York and then it established its branches worldwide as in 2000 in Paris, in 2001 in Frankfurt, San Francisco and Hong Kong. Branches of Madrid and Tokyo were opened in 2002 and 2003 respectively. Today there are currently six main groups of indices: Global Equity, Regional and Partner, Fixed Income, Alternative Investment, Responsible Investment and Governance, and Non-Market Cap Weighted. History of London Stock Market The London Stock Exchange or LSE is one of the world oldest stock exchanges with a well-off history since 1698. The exchange commenced its life journey in the coffee houses of London during the 17th century. The idea of shared trade in London actually came out because of two British expeditions. The first one was The Muscovy Company's attempt to get in touch with China via White Sea. The second one was the voyage of East India Company to India in the East. The companies were unable to meet the requirements of such costly private journeys; therefore these companies collect the money by advertising shares to local traders with a right to a share of any profits ultimately made. The idea soon caught on. By 1695, there were almost 140 joint-stock companies. The center point of trade in shares was the coffee shops of City's Change Alley, Garraway's and Jonathan's. The broker John Castaing published the prices of stocks and goods called The Course of the Exchange and other things in these coffee-shops. The brokers established their own building in Sweeting's Alley during 1773. This building had two stories, a dealing room on the ground floor and a coffee room above. Initially the location got famous by the name as "New Jonathan's," but after a little while members changed the name to "The Stock Exchange". In 1972, the Queen Elizabeth II opened Stock Exchange Tower, which was located on Thread needle Street and housed the Trading Floor where traders would customarily to settle down their business agreements. In July 2004, the London Stock Exchange removed from Thread needle Street to its present location in Paternoster Square which is still within the "Square Mile" also known as the City of London. London Stock Exchange Strategy London Stock Exchange has the declared policy is to compete in business market internationally for economic matters and become the most wanted. LSE has the aim to enhance its existing business up to the highest scale of operations, through appropriate business initiative, acquisitions, joint business projects and associations. Core Business Areas As it is organized today, the LSE has four core business areas or offerings to the market: 1. LSE has a smooth, fast and efficient trading platform for brokers, firms and companies around the world to purchase and advertise securities. 2. LSE offers Equity Markets by facilitating the companies globally to raise capital to grow business and by listing securities in a well harmonious market. These markets are accessible through the Main Market and AIM. 3. LSE has policy to be the world's most professional and running market for equity derivatives. The EDX London looks forward to progress the LSE beyond their equities markets. London Stock Exchange Facts and Figures The subsequent are some of the facts and figures about London Stock Exchange to make an understanding about the size the exchange: 1. The exchange is arguably the largest stock exchange in Europe. 2. There are more than 300 firms worldwide trade as members of the London Stock Exchange. 3. The exchange asserts to be the most worldwide of all stock exchanges with more than 400 companies from over 55 countries acknowledged to trade in their markets. 4. The LSE has the balance sheet for 63% of all European initial public contributions. London Stock Exchange Holiday Schedule and Hours of Operations As most European Countries do not observe the exact same holidays as in American Countries, the following holiday schedule and working hours were celebrated in 2006 for the London Stock Exchange. Holiday Schedule Holiday Date New Year January 2, 2006 Good Friday April 14, 2006 Easter Sunday April 17, 2006 May May 1, 2006 Spring May 29, 2006 Summer August 28, 2006 Christmas December 25, 2006 Christmas December 26, 2006 Hours of Operations Operation Timing Trade Reporting 07:15 -07:50 Opening Auction 07:50 -08:00 Continuous Trading 08:00 -16:20 VWAP 16:20 -16:30 Closing Auction 16:30 -16:35 Order Maintenance 16:35 -17:00 Trade Reporting Only 17:00 -17:15 Note: UK Time is in the Western European Time Zone (WET), which is the same as Greenwich Mean Time (GMT). Summer (Daylight-Saving)Time is observed in UK Time, where the time is shifted forward by 1 hour; 1 hours ahead of Greenwich Mean Time (GMT+1). Current Issues In LSE , presently three main indices are in operational i.e. FTSE 350 Index, The FTSE SmallCap Index and The FTSE AIM UK 50 Index. The FTSE 350 Index This is a market capitalization weighted stock market index which is dealing with the largest 350 companies by capitalization having their primary listing on the LSE. FTSE 350 Index actually comprises of 100 largest companies of FTSE 100 Index and 250 largest companies of FTSE 250 Index. The FTSE SmallCap Index It consists of companies outside of the FTSE 350 Index and represents approximately 2% of the UK market capitalization. The FTSE AIM UK 50 Index This index was launched on 16th May 2005 and it consists of 50 largest companies of United Kingdom. These companies primarily have their listing on Alternative Investment Market. The index is analyzed quarterly and the member companies may change based on market capitalization data at the end of February, May, August and November. Analysis Table 1: Main - UK listed companies: new issues No. of Market raised No. of Market raised companies value (m) (m) companies value (m) (m) October 2007 Year to date New companies 1 435.80 110.73 50 21,085.95 5,498.89 of which Fixed Interest 0.00 0.00 Transfer 1 867.40 0.00 6 3,103.92 0.00 of which Fixed Interest 0.00 0.00 Re-listing 3 21,295.70 0.00 4 21,535.64 0.00 of which Fixed Interest 0.00 0.00 Totals 5 22,598.90 110.73 60 45,725.51 5,498.89 of which Fixed Interest 0.00 0.00 Total Equity only 110.73 5,498.89 of which Total 0 0.00 0.00 1 157.13 0.00 Table 1: Main - UK listed companies: further issues Company/ Issue type/ Issue Money Date Security Business sector price (p) raised (m) 10/3/2007 COSTAIN GROUP Rights 24 64.3 ORD GBP0.05 2357 - Heavy Construction 10/29/2007 BH MACRO LTD Placing EUR11.65 22.66 ORD NPV (EUR) 8985 - Equity Investment Instruments 10/29/2007 BH MACRO LTD Placing USD11.75 27.30 ORD NPV (USD) 8985 - Equity Investment Instruments 10/29/2007 BH MACRO LTD Placing 1,176 14.81 ORD NPV (GBP) 8985 - Equity Investment Instruments 10/22/2007 CONNAUGHT Placing & Open Offer 310 57.91 ORD GBP0.02 2791 - Business Support Services 10/16/2007 COOKSON GROUP Placing 825 153.31 ORD GBP0.10 2727 - Diversified Industrials 10/12/2007 COSALT Open Offer 330 32.47 ORD GBP0.25 2727 - Diversified Industrials 10/3/2007 DEXION TRADING LTD Placing 100 10.39 'C'GBP NPV 8985 - Equity Investment Instruments 10/9/2007 AIDA FUND LTD(THE) Placing 234 0.05 GBP ORD SHS OF USD0.025 8985 - Equity Investment Instruments 10/9/2007 AIDA FUND LTD(THE) Placing EUR2.7 1.54 EURO ORD SHS OF USD0.025 8985 - Equity Investment Instruments 10/10/2007 ANGLO AMERICAN Exercise Of Options 0.00 0.00 ORD USD0.54945 1775 - General Mining 10/15/2007 ANGLO-EASTERN PLANTATIONS Exercise Of Options 0 0.00 GBP0.25 3573 - Farming & Fishing 10/8/2007 BRAEMAR SHIPPING SERVICES PLC Exercise Of Options 0 0.00 ORD GBP0.10 2777 - Transportation Services 10/24/2007 BREWIN DOLPHIN HLDGS Exercise Of Options 0 0.00 ORD GBP0.01 2777 - Asset Managers 10/1/2007 CONNAUGHT Exercise Of Options 0 0.00 ORD GBP0.02 2791 - Business Support Services 10/3/2007 FISHER(JAMES)& SONS PLC Exercise Of Options 0 0.00 ORD GBP0.25 2777 - Transportation Services 10/16/2007 IBIS MEDIA VCT 1 Offer For Subscription 0 0.00 ORD GBP0.01 8985 - Equity Investment Instruments 10/17/2007 JARVIS Exercise Of Warrants 0 0.00 ORD GBP0.05 2791 - Business Support Services 10/24/2007 LAND SECURITIES GROUP PLC Exercise Of Options 0 0.00 ORD GBP0.10 8737 - Real Estate Investment Trusts 10/22/2007 PARITY GROUP Exercise Of Options 0 0.00 ORD GBP0.02 9533 - Computer Services 10/24/2007 PHOENIX VCT PLC Issue For Cash 120 0.25 'C'SHS GBP0.10 8985 - Equity Investment Instruments 22 Other issues raising less than 10m 2.86 Summary Equity Fixed Interest No. of Money No. of Money Total money Issues raised (m) Issues raised (m) raised (m) October 2007 29 321.72 0 0.00 321.72 Year to date 411 7,356.26 14 155.39 7,511.65 October 2007 4 0.59 Year to date 56 1,501.75 Table 2: Main Market - International listed companies: new issues Company/ value Money Country of origin/ Date Security issue (m) raised (m)* extraMARK / techMARK 10/12/2007 FINANCIAL TECHNOLOGIES (INDIA) 49.65 49.65 Latham & Watkins GDR EACH REPR 0.1428 ORD 'REGS' India 10/25/2007 GRUPO CLARIN SA 229.65 229.65 Cleary, Gottlieb, Steen & Hami GDR EACH REPR 2 CLS'B' SHS'REGS' Argentina 10/5/2007 HRVATSKE TELEKOMUNIKACIJE D 68.63 68.63 Baker & McKenzie GDR EACH REPR 1 ORD 'REGS' Croatia 10/4/2007 OGK 2 127.25 127.25 Debevoise Plimpton GDR EACH REPR 100 ORD 'REGS' Russia 10/19/2007 URALKALI JSC 460.11 460.11 Cleary, Gottlieb, Steen & Hami GDR EACH REPR 5 ORD 'REGS' Russia 9/6/2007 DB X-TRACKERS 0.00 0.00 Deutsche Bank AG FTSE 100 ETF '1D' Luxembourg 9/12/2007 SPA ETF PLC 0.00 0.00 Deloitte & Touche MARKET GRADER 100 Republic of Ireland 8/31/2007 INTERNATIONAL FERRO METALS 5.64 0.00 Numis Corporation Plc NPV Australia 8/23/2007 NASPERS 0.00 0.00 Citigroup ADR EACH REPR 1 CLS'N' ORD(SPON) South Africa 8/3/2007 SYMPHONY INTERNATIONAL HLDGS LTD 165.30 92.85 Merrill Lynch International Summary No. of Market Money No. of Market Money companies value (m) raised (m) companies value (m) raised (m) October 2007 Year to date New companies Equity 2 195.88 195.88 16 8,683.26 2,090.79 Depositary Receipts 3 739.41 739.41 19 8,814.00 8,138.29 Fixed interest 0 0.00 0.00 1 135.02 0.00 Relisting Equity 0 0.00 0.00 4 6,281.17 0.00 and Transfer Depositary Receipts 0 0.00 0.00 0 0.00 0.00 Fixed interest 0 0.00 0.00 0 0.00 0.00 Totals Equity 2 195.88 195.88 20 14,964.43 2,090.79 Depositary Receipts 3 739.41 739.41 19 8,814.00 8,138.29 Fixed interest 0 0.00 0.00 1 135.02 0.00 Grand Total 5 935.29 935.29 40 23,913.45 10,229.08 of which IPO's 5 935.29 935.29 26 13,032.71 10,229.08 Table 2: Main Market - International listed companies: further issues No. of Money No. of Money Total Money rights raised other raised Further raised issues (m) issues (m) issues (m) October 2007 0 0.00 7 1.99 7 1.99 Year to date 2 62.78 49 465.96 51 528.74 October 2007 0 0.00 0 0.00 0 0.00 Year to date 0 0.00 0 0.00 0 0.00 Table 3: New public sector issues British Government issues Nominal Money Date Stock Price value (m) raised (m) New Issues 10/3/2007 Treasury 4.75% Treasury Gilt 07/12/30 Gbp 99.57% 2,250.0 2,240.3 10/11/2007 Treasury 1.875% Idx Lkd Tsy Gilt 22/11/22 Gbp 105.12% 1,200.0 1,261.4 10/25/2007 Treasury 1.125% Idx-Lkd Gilt 22/11/37 101.95% 925.0 943.0 10/9/2007 Lloyds Tsb Bank Extendible Nts 06/09/08 Usd250000 100.00% 950.9 950.9 10/9/2007 Lloyds Tsb Group Extendible Nts 06/09/08 Usd250000 100.00% 590.9 590.9 10/5/2007 Ghana (Republic Of) 8.5% Nts 04/10/17 Usd100000 'Regs' 100.00% 372.4 372.4 10/3/2007 New South Wales Treasury Corp 8% Gtd Exchangable Bds 1/3/2008 Aud 100.52% 15.9 16.0 10/9/2007 New South Wales Treasury Corp 8% Gtd Exchangable Bds 1/3/2008 Aud 100.48% 21.5 21.6 10/18/2007 New South Wales Treasury Corp 5.5% Gtd Gbl Exch Bds 01/03/17 Aud(Var) 91.71% 25.8 23.7 10/18/2007 Sweden(Kingdom Of) 3.875% Nts 15/06/10 Usd(Var) 99.83% 49.7 49.6 10/16/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 100.64% 19.3 19.5 10/18/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.31% 6.4 6.3 10/19/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.43% 1.6 1.5 9/12/2007 Treasury 4.5% Tsy Gilt 7/12/42 Gbp 101.59% 2,000.0 2,031.8 9/14/2007 Treasury 5.25% Treasury Gilt 2012 101.08% 2,500.0 2,527.0 9/27/2007 Treasury 1.125% Idx-Lkd Gilt 22/11/37 99.11% 900.0 892.0 9/3/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.90% 8.2 8.1 9/26/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.61% 138.7 136.8 9/26/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.67% 10.6 10.5 9/27/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.62% 4.5 4.4 8/10/2007 Treasury 5% Tsy Gilt 07/03/18 Gbp 98.14% 2,500.0 2,453.5 8/22/2007 Seychelles(Republic Of) 9.125% Bds 03/10/11 Usd1000 98.33% 14.7 14.4 8/1/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/10/09 Aud(Var) 98.66% 4.3 4.2 8/2/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/10/09 Aud(Var) 98.60% 18.0 17.8 8/8/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/10/09 Aud(Var) 98.66% 14.1 14.0 8/15/2007 New South Wales Treasury Corp 8% Gtd Exchangable Bds 1/3/2008 Aud 100.81% 38.6 38.9 8/24/2007 New South Wales Treasury Corp 8% Gtd Exchangable Bds 1/3/2008 Aud 100.75% 47.2 47.5 8/24/2007 Goteborg(City Of) Fltg Rate Nts 24/08/12 Sek100000 99.96% 34.4 34.4 8/31/2007 Finland(Republic Of) 4.25% Nts 31/08/17 Sek500000 99.32% 72.5 72.0 8/9/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.67% 0.9 0.9 8/15/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.64% 8.6 8.5 8/15/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.64% 4.3 4.2 8/20/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.94% 12.6 12.5 8/23/2007 New South Wales Treasury Corp 6% Gtd Gbl Exch Bds 01/05/12 Aud(Var) 98.98% 25.7 25.5 7/4/2007 Treasury 4.5% Tsy Gilt 7/12/42 Gbp 95.00% 2,250.0 2,137.5 7/9/2007 Treasury 5% Stk 2012 97.70% 767.0 749.4 Year to date Nominal Money Type of issue No. of issues value (m) raised (m) Shorts (0 - 7 yrs) 4 11,017.0 10,848.1 Mediums (7 - 15 yrs) 5 10,050.0 9,668.6 Longs (over 15 yrs) 12 23,150.0 22,817.3 Index linked 6 5,100.0 5,306.0 Variable rate 0 0.0 0.0 Foreign currency bonds 0 0.0 0.0 Totals 27 49,317.0 48,640.0 Redemptions 3 19,954.1 Net figure (issues less redemptions) 29,362.9 Other public sector No. of Nominal Money raised issues value (m) (m) October 2007 UK Local authority 0 0.0 0.0 Overseas Public sector (foreign currency) 8 512.6 510.6 Sterling denominated bonds 0 0.0 0.0 Totals 8 512.6 510.6 Year to date UK Local authority 0 0.0 0.0 Overseas Public sector (foreign currency) 64 4,975.8 4,937.0 Sterling denominated bonds 0 0.0 0.0 Totals 64 4,975.8 4,937.0 Table 5: Money raised by business sector October 2007 Main Market UK New Issues Rights issues Other issues No. of Money No. of Money No. of Money Group Business sector companies raised (m) issues raised (m) issues raised (m) Equities 0530 Oil & Gas Producers 0 0.00 0 0.00 1 0.00 0570 Oil Equipment, Services & Distribution 0 0.00 0 0.00 0 0.00 0001 Total Oil & Gas 0 0.00 0 0.00 1 0.00 1350 Chemicals 0 0.00 0 0.00 0 0.00 1730 Forestry & Paper 0 0.00 0 0.00 0 0.00 1750 Industrial Metals 0 0.00 0 0.00 0 0.00 1770 Mining 0 0.00 0 0.00 2 0.00 1000 Total Basic Materials 0 0.00 0 0.00 2 0.00 2350 Construction & Materials 0 0.00 1 64.30 0 0.00 2710 Aerospace & Defense 0 0.00 0 0.00 0 0.00 2720 General Industrials 0 0.00 0 0.00 2 185.78 2730 Electronic & Electrical Equipment 0 0.00 0 0.00 0 0.00 2750 Industrial Engineering 0 0.00 0 0.00 0 0.00 2770 Industrial Transportation 0 0.00 0 0.00 2 0.00 2790 Support Services 0 0.00 0 0.00 3 57.91 2000 Total Industrials 0 0.00 1 64.30 7 243.69 3350 Automobiles & Parts 0 0.00 0 0.00 0 0.00 3530 Beverages 0 0.00 0 0.00 0 0.00 3570 Food Producers 0 0.00 0 0.00 1 0.00 3720 Household Goods 0 0.00 0 0.00 0 0.00 3740 Leisure Goods 0 0.00 0 0.00 0 0.00 3760 Personal Goods 0 0.00 0 0.00 0 0.00 3780 Tobacco 0 0.00 0 0.00 0 0.00 3000 Consumer Goods 0 0.00 0 0.00 1 0.00 4530 Health Care Equipment & Services 0 0.00 0 0.00 0 0.00 4570 Pharmaceuticals & Biotechnology 0 0.00 0 0.00 1 0.00 4000 Total Health Care 0 0.00 0 0.00 1 0.00 5330 Food & Drug Retailers 0 0.00 0 0.00 0 0.00 5370 General Retailers 0 0.00 0 0.00 0 0.00 5550 Media 0 0.00 0 0.00 1 0.00 5750 Travel & Leisure 0 0.00 0 0.00 0 0.00 5000 Total Consumer Services 0 0 0 0 1 0 6530 Fixed Line Telecommunications 0 0.00 0 0.00 1 0.00 6570 Mobile Telecommunications 0 0.00 0 0.00 0 0.00 6000 Total Telecommunications 0 0.00 0 0.00 1 0.00 7530 Electricity 0 0.00 0 0.00 0 0.00 7570 Gas, Water & Multiutilities 0 0.00 0 0.00 0 0.00 7000 Total Utilities 0 0.00 0 0.00 0 0.00 8350 Banks 0 0.00 0 0.00 0 0.00 8530 Nonlife Insurance 0 0.00 0 0.00 0 0.00 8570 Life Insurance 0 0.00 0 0.00 0 0.00 8730 Real Estate 0 0.00 0 0.00 1 0.00 8770 General Financial 0 0.00 0 0.00 1 0.00 8980 Equity Investment Instruments 0 0.00 0 0.00 10 77.44 8990 Nonequity Investment Instruments 0 0.00 0 0.00 0 0.00 8000 Total Financials 0 0.00 0 0.00 12 77.44 9530 Software & Computer Services 1 110.73 0 0.00 3 0.59 9570 Technology Hardware & Equipment 0 0.00 0 0.00 0 0.00 9000 Total Technology 1 110.73 0 0.00 3 0.59 Total Equities 1 110.73 1 64.30 29 321.72 Company Fixed Interest Debentures and Loans 0 0.00 0 0.00 0 0.00 Convertibles 0 0.00 0 0.00 0 0.00 Preference 0 0.00 0 0.00 0 0.00 Total Company Fixed Interest 0 0.00 0 0.00 0 0.00 New Issues Rights issues Other issues Grand totals No. of Money No. of Money No. of Money No. of Money companies raised (m) issues raised (m) issues raised (m) issues raised (m) Business sector Equities 0 0.00 0 0.00 5 26.95 5 26.95 Oil & Gas Producers 1 75.00 0 0.00 0 0.00 1 75.00 Oil Equipment, Services & Distribution 1 75.00 0 0.00 5 26.95 6 101.95 Total Oil & Gas 0 0.00 0 0.00 2 0.00 2 0.00 Chemicals 0 0.00 0 0.00 1 0.00 1 0.00 Forestry & Paper 1 101.54 0 0.00 0 0.00 1 101.54 Industrial Metals 1 100.47 0 0.00 9 11.04 10 111.51 Mining 2 202.00 0 0.00 12 11.04 14 213.04 Total Basic Industries 1 72.83 1 64.30 2 201.12 4 338.25 Construction & Materials 0 0.00 1 436.38 2 761.85 3 1,198.23 Aerospace & Defense 1 120.45 0 0.00 5 474.19 6 594.64 General Industrials 1 54.24 0 0.00 2 0.10 3 54.34 Electronic & Electrical Equipment 0 0.00 0 0.00 0 0.00 0 0.00 Industrial Engineering 0 0.00 0 0.00 9 0.00 9 0.00 Industrial Transportation 2 262.36 0 0.00 21 400.18 23 662.54 Support Services 5 509.87 2 500.68 41 1,837.44 48 2,847.99 Total Industrials 0 0.00 0 0.00 1 7.85 1 7.85 Automobiles & Parts 0 0.00 0 0.00 0 0.00 0 0.00 Beverages 1 52.24 0 0.00 2 6.75 3 58.99 Food Producers 0 0.00 0 0.00 2 4.90 2 4.90 Household Goods 0 0.00 0 0.00 2 0.00 2 0.00 Leisure Goods 0 0.00 0 0.00 0 0.00 0 0.00 Personal Goods 0 0.00 0 0.00 0 0.00 0 0.00 Tobacco 1 52.24 0 0.00 7 19.50 8 71.74 Consumer Goods 0 0.00 1 32.55 1 34.05 2 66.59 Beverages 0 0.00 0 0.00 15 540.60 15 540.60 Food Producers & Processors 0 0.00 1 32.55 16 574.65 17 607.20 Total Non-Cyclical Consumer Goods 0 0.00 0 0.00 0 0.00 0 0.00 Food & Drug Retailers 1 928.80 0 0.00 7 4.77 8 933.57 General Retailers 1 180.00 0 0.00 11 70.97 12 250.97 Media 1 120.00 0 0.00 4 221.35 5 341.35 Travel & Leisure 3 1,228.80 0 0.00 22 297.10 25 1,525.90 Total Consumer Services 0 0.00 0 0.00 4 0.00 4 0.00 Fixed Line Telecommunications 0 0.00 0 0.00 0 0.00 0 0.00 Mobile Telecommunications 0 0.00 0 0.00 4 0.00 4 0.00 Total Telecommunications 0 0.00 0 0.00 0 0.00 0 0.00 Electricity 0 0.00 0 0.00 0 0.00 0 0.00 Gas, Water & Multiutilities 0 0.00 0 0.00 0 0.00 0 0.00 Total Utilities 0 0.00 0 0.00 1 2,425.00 1 2,425.00 Banks 0 0.00 0 0.00 2 300.02 2 300.02 Nonlife Insurance 0 0.00 0 0.00 1 0.00 1 0.00 Life Insurance 5 542.86 0 0.00 18 161.34 23 704.20 Real Estate 1 177.87 0 0.00 37 168.53 38 346.40 General Financial 23 2,545.14 0 0.00 192 1,134.63 215 3,679.77 Equity Investment Instruments 0 0.00 0 0.00 13 158.98 13 158.98 Nonequity Investment Instruments 29 3,265.86 0 0.00 264 4,348.50 293 7,614.36 Total Financials 1 110.73 0 0.00 36 233.08 37 343.81 Software & Computer Services 1 54.37 0 0.00 4 8.00 5 62.37 Technology Hardware & Equipment 2 165.10 0 0.00 40 241.08 42 406.18 Total Technology 43 5,498.89 3 533.23 411 7,356.26 457 13,388.37 Total Equities Company Fixed Interest 0 0.00 0 0.00 1 52.63 1 52.63 Debentures and Loans 0 0.00 0 0.00 0 0.00 0 0.00 Convertibles 0 0.00 0 0.00 13 102.76 13 102.76 Preference 0 0.00 0 0.00 14 155.39 14 155.39 Total Company Fixed Interest Table 6: Distribution of issues by equity money raised Total New issues Rights issues Other issues Money Money Money Money Money raised No. of raised No. of raised No. of raised No. of raised range (m) issues (m) companies at issue issues (m) issues (m) (m) October 2007 1000+ 0 0.00 0 0.00 0 0.00 0 0.00 500 - 1,000 0 0.00 0 0.00 0 0.00 0 0.00 250 - 500 0 0.00 0 0.00 0 0.00 0 0.00 100 - 250 2 264.04 1 110.73 0 0.00 1 153.31 50 - 100 2 122.21 0 0.00 1 64.30 1 57.91 25 - 50 2 59.77 0 0.00 0 0.00 2 59.77 10 - 25 3 47.86 0 0.00 0 0.00 3 47.86 5 - 10 0 0.00 0 0.00 0 0.00 0 0.00 2 - 5 0 0.00 0 0.00 0 0.00 0 0.00 0 - 2 22 2.86 0 0.00 0 0.00 22 2.86 Totals 31 496.75 1 110.73 1 64.30 29 321.72 More than 50m 4 386.26 1 110.73 1 64.30 2 211.22 Less than 50m 27 110.49 0 0.00 0 0.00 27 110.49 Less than 25m 25 50.73 0 0.00 0 0.00 25 50.73 Year to date 1000+ 1 2,425.00 0 0.00 0 0.00 1 2,425.00 500 - 1,000 3 2,378.80 2 1,628.80 0 0.00 1 750.00 250 - 500 5 1,883.34 1 400.00 1 436.38 3 1,046.96 100 - 250 23 3,808.99 13 2,431.97 0 0.00 10 1,377.02 50 - 100 19 1,395.39 8 646.71 1 64.30 10 684.38 25 - 50 23 791.38 7 274.10 1 32.55 15 484.73 10 - 25 22 364.03 4 66.53 0 0.00 18 297.51 5 - 10 20 152.61 4 33.76 0 0.00 16 118.84 2 - 5 35 114.92 4 16.10 0 0.00 31 98.82 0 - 2 306 73.91 0 0.92 0 0.00 306 73.00 Totals 457 13,388.37 43 5,498.89 3 533.23 411 7,356.26 More than 50m 51 11,891.52 24 5,107.48 2 500.68 25 6,283.36 Less than 50m 406 1,496.85 19 391.41 1 32.55 386 1,072.90 Less than 25m 383 705.47 12 117.31 0 0.00 371 588.17 Distribution of Companies by Equity Market Value October 2007 Equity Equity No. of market No. of market companies % value (m) % companies % value (m) % Over 2,000 1 0.1 2,101.0 2.0 15 12.2 291,267.5 91.9 1,000 - 2,000 3 0.2 3,630.9 3.5 5 4.1 6,644.2 2.1 500 - 1,000 17 1.0 11,212.4 10.8 11 8.9 7,848.8 2.5 250 - 500 67 4.0 22,860.8 21.9 14 11.4 4,655.0 1.5 100 - 250 201 12.0 30,411.2 29.2 30 24.4 4,806.8 1.5 50 - 100 231 13.8 16,239.7 15.6 14 11.4 1,018.7 0.3 25 - 50 282 16.8 9,933.5 9.5 14 11.4 556.1 0.2 10 - 25 347 20.7 5,592.6 5.4 10 8.1 170.9 0.1 5 - 10 210 12.5 1,529.1 1.5 6 4.9 38.8 0.0 2 - 5 186 11.1 642.9 0.6 3 2.4 10.1 0.0 0 - 2 99 5.9 108.4 0.1 1 0.8 1.2 0.0 Unvalued securities 0 0.0 - - 0 0.0 - - Suspended 33 2.0 - - 0 0.0 - - Totals 1,677 100.0 104,262.3 100.0 123 100.0 317,018.0 100.0 More than 50m 520 31.0 86,456.0 82.9 89 72.4 316,241.0 99.8 Less than 50m 1,124 67.0 17,806.4 17.1 34 27.6 777.1 0.2 Less than 25m 842 50.2 7,872.9 7.6 20 16.3 221.0 0.1 Market Summary New Issues by Equity Market Value at Issue Market Equity Money Equity Money New investment companies Equity Money value No. of market raised No. of market raised Equity Money No. of market raised range (m) companies value (m) (m) companies value (m) (m) No. of market raised companies value (m) (m) companies value (m) (m) October 2007 1,000+ 1 20,717.5 0.0 0 0.0 0.0 0 0.0 0.0 1 20,717.5 0.0 500 - 1,000 1 834.1 0.0 0 0.0 0.0 0 0.0 0.0 1 834.1 0.0 250 - 500 2 814.8 110.7 1 435.8 110.7 0 0.0 0.0 1 379.0 0.0 100 - 250 1 196.1 0.0 0 0.0 0.0 0 0.0 0.0 1 196.1 0.0 50 - 100 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 25 - 50 0 33.3 0.0 0 0.0 0.0 0 0.0 0.0 0 33.3 0.0 10 - 25 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 5 - 10 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 2 - 5 0 3.1 0.0 0 0.0 0.0 0 0.0 0.0 0 3.1 0.0 0 - 2 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 Totals 5 22,598.9 110.7 1 435.8 110.7 0 0.0 0.0 4 22,163.1 0.0 > 50m 5 22,562.6 110.7 1 435.8 110.7 0 0.0 0.0 4 22,126.7 0.0 < 50m 0 36.3 0.0 0 0.0 0.0 0 0.0 0.0 0 36.3 0.0 < 25m 0 3.1 0.0 0 0.0 0.0 0 0.0 0.0 0 3.1 0.0 Year to Date 1,000+ 6 32,058.3 928.8 4 10,243.0 928.8 0 0.0 0.0 2 21,815.4 0.0 500 - 1,000 8 5,836.7 1,299.0 6 4,360.2 1,299.0 2 1415.5 785.4 2 1,476.4 0.0 250 - 500 9 3,626.2 1,053.9 8 3,247.1 1,053.9 1 400.0 400.0 1 379.0 0.0 100 - 250 17 3,308.6 1,638.1 12 2,381.6 1,638.1 3 1045.9 830.7 5 927.0 0.0 50 - 100 4 509.3 267.7 4 509.3 267.7 3 459.3 217.7 0 0.0 0.0 25 - 50 5 275.7 209.1 5 242.4 209.1 5 242.4 209.1 0 33.3 0.0 10 - 25 3 51.5 51.5 3 51.5 51.5 3 51.5 51.5 0 0.0 0.0 5 - 10 4 39.2 33.8 4 33.8 33.8 4 33.8 33.8 0 5.4 0.0 2 - 5 4 19.2 16.1 4 16.1 16.1 4 16.1 16.1 0 3.1 0.0 0 - 2 0 0.9 0.9 0 0.9 0.9 0 0.9 0.9 0 0.0 0.0 Totals 60 45,725.5 5,498.9 50 21,086.0 5,498.9 25 3,665.4 2545.1 10 24,639.6 0.0 > 50m 44 45,339.0 5,187.5 34 20,741.3 5,187.5 9 3320.7 2233.8 10 24,597.8 0.0 < 50m 16 386.5 311.4 16 344.7 311.4 16 344.7 311.4 0 41.8 0.0 < 25m 11 110.8 102.3 11 102.3 102.3 11 102.3 102.3 0 8.5 0.0 Market Summary Main Market Main Market UK Listed International Listed Year Year Year Company Data Oct 07 to date Oct 07 to date Oct 07 to date New companies 5 60 5 40 0 1 Delistings/Transfers 13 94 3 32 4 10 31 October 2007 Trading 1,211 337 123 Suspended 31 3 0 Total companies 1,242 340 123 Equity market 2,025.6 2,632.3 317.0 value (bn) Covered Warrant Market New Warrants 1 5 42 537 Expired Warrants 0 2 54 398 Total warrants listed 48 527 Money Raised Main Market Main Market UK Listed International Listed No. of co's Money No. of co's Money No. of co's Money / issues raised (m) / issues raised (m) / issues raised (m) October 2007 Equity New Issues 1 110.7 5 935.3 0 0.0 Further issues 30 386.0 7 2.0 4 0.6 Total 31 496.7 12 937.3 4 0.6 Fixed Interest New & Further Issues 0 0.0 0 0.0 - - Eurobonds / MTN's 177 7,982.7 183 15,190.8 - - Total 177 7,982.7 183 15,190.8 0 0.0 Public sector 3 4,444.8 8 510.6 0 0.0 Grand Total 211 12,924.3 203 16,638.6 4 0.6 Year to date Equity New Issues 43 5,498.9 26 10,229.1 1 0.0 Further issues 414 7,889.5 51 528.7 57 1938.1 Total 457 13,388.4 77 10,757.8 58 1,938.1 Fixed Interest New & Further Issues 14 155.4 3 0.0 - - Eurobonds / MTN's 1,726 135,180.1 2,019 190,358.9 - - Total 1,740 135,335.5 2,022 190,358.9 0 0.0 Public sector 27 48,640.0 64 4,937.0 0 0.0 Grand Total 2,224 197,363.9 2,163 206,053.7 58 1,938.1 References BBC News, (July 20, 1990). On This Day: IRA bombs Stock Exchange. Essen, Yvette. (December 2007). Aim market: Offshore attractions for the 'sophisticated' investor. Goldsmith, B. and Elliott, M. (May, 2006). Nasdaq raises LSE stake, making rival bids harder. Reuters. http://www.bloomberg.com/apps/newspid=20601087&sid=aqzGAS7oAezg&refer=home http://www.londonstockexchange.com/en-gb/pricesnews/statistics/listcompanies/ http://investing.reuters.co.uk/news/articleinvesting.aspxtype=mergersNews&storyID=2007-08-20T091233Z_01_L2025258_RTRIDST_0_LSE-NASDAQ-SALE-UPDATE-1.XML. Lucchetti, A.; MacDonald, A. (May, 2006). Nasdaq Lifts Its LSE Stake to 24%. The Wall Street Journal. Lucchetti, A.; MacDonald, A.( November,2006). Nasdaq Makes Bid to Buy Rest of London Stock Exchange. The Wall Street Journal. MacDonald, A.; Lucchetti, A. (May, 2006). In LSE Stakes, Nasdaq Advances, Euronext Falls. The Wall Street Journal. Ortega, E. (April, 2006). Nasdaq Buys 15 Percent Stake in LSE for $782 Million. Bloomberg News. Patrick, M., Lucchetti, A., Reilly, D., Taylor, E. (April 2006), Nasdaq Acquires 15% of LSE, The Wall Street Journal Treanor, Jill (10 March 2007). City hits out over US 'casino' jibe at Aim. The Guardian. Read More