SAPM | Section A | Group 2
Abhishek Sinha | Manish Yadav | Manu Gupt | Nishant Hingu | Roshan Tirkey | Vijay Kumar Siddi
DEMUTUALIZATION ROLE & DEFINITION
majuscule Markets and Exchanges
Capital markets channel the savings of an economy into investments Stock turns get an organized market where issuers and investors are brought together Demutualization: conversion of an exchange from a not-for-profit member owned organization to a for-profit shareholder owned potentiometer
Organizational Structure differences
Role and powers of the exchanges Board of Directors Influence of external bodies and public interest representatives healthy and regulatory frameworks Degree of oversight of each exchange by Govt.
Traditional Exchanges
Mutual associations owned by their members Co-operative governance: closedown identity between owners and direct users of its trading services egalitarian: one-member one-vote Ownership rights not freely tradeable or vicarious Forfeited on the cessation of membership Non-profit objective and veto the distribution of surpluses Seldom able to shift capital from anyone other(a) than their members
Demutualized Exchange DE
Corporations with share capital which are listed publicly traded 3 principal groups: owners, close-makers, customers Shareholders vest decision-making power in board of directors suffrage rights of shareholders are proportionate to their economic interest in the corporation Owners with greater economic interests are more capable of influencing decision making Separate ownership rights from trading privileges Able to raise new capital from a variety of sources
Post-demutualization structure
Remained private corporations usual corporations by listing their stock Subsidiaries of publicly traded holding companies rough have limited the tradeablity of their shares postpublic listing Most have obligate share...If you want to get a full essay, order it on our website: Ordercustompaper.com
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