Futres

This book is for me who wants to become rich through investing in financial instruments and alternative assets.

The first part of the book discusses investing and the need to invest, stating that the only way to become rich or maintain the riches that I have already acquired is through investing, that is, making the assets I already have to acquire more assets for me. This part also covers the basic and fundamental principles of investing.

The second part of the book takes me through the various investment products; the markets where I can buy and ell such products and the market players, including regulators, associations and brokers.

Finally, the book also introduces the East African financial market, the available financial instruments and how to invest in them, listing the various financial institutions and their regulators, the exchanges, the member firms and the listed companies. The book then concludes by introducing a prospective investor to fundamental principles of economics and economic institutions.

In this paper, we will analyse the role of brokers, dealers and investment banks in the equity markets. Special attention will be given in analysing the role of financial intermediaries at initial public offerings and secondary offerings, according to the legal framework in Serbia. Serbia, as other transitional economies, has problems in mobilising funds for its stock exchange. Especially local savers do not trust the local financial system, especially the stock exchange. One of the major reasons for this distrust, besides bad experiences in the past, is a lack of knowledge about the functioning of stock exchanges. On the other hand, companies in Serbia often rely on debt-based financial instruments, where they have to pay high interest rates. However, equity financing with partners, especially with many partners is at a very low level. Therefore, we want to analyse the functioning of equity markets by explaining the concept of stocks, public offerings and the role of financial intermediaries in this process.

Since the 1990s, English universities have adopted various modes to raise finance to fund their expansion plans. Public, Private and Private Finance Initiatives (PFI) were the three modes adopted by English universities to raise funds via bonds. Greenwich University issued public bonds in 1998. After a long interval, Cambridge University issued public bonds worth £350 million in 2012. Moody’s Investor Service gave an AAA debt rating to Cambridge University’s bond issue with due maturity in 2052 with a 3.75% coupon rate. According to industry analysts, the AAA rating denoted the strong market position of Cambridge University with considerable liquid assets, stable revenues and strong governance structure. Cambridge University had planned to use such proceeds for creating accommodation and increase its financial independence. But, industry observers felt that both Lancaster University and Greenwich University had unfavourable experience of issuing public bonds. Meanwhile, ‘The Higher Education Funding Council for England’ had reduced the level of grants given to the universities, which forced them to look out for options for availing funds at a cheaper rate. It remained to be seen whether investors would continue to hold on to their faith on Cambridge University’s repayment capabilities as both Lancaster University and Greenwich University had burnt their figures via issue of public bonds.