If a company were to go into liquidation, preference shareholders would rank above ordinary shareholders for the repayment of their investment in the company. Generally, the higher the figure, the higher the confidence. It is calculated by dividing the current share price by the last published earnings per share - where earnings per share is net profit divided by the number of ordinary shares. Price sensitive information Information which, if made public, is likely to have a significant effect on the price of a company s securities. The function of a stock exchange in bringing securities to the market for the first time.
Money is raised either for the owners before flotation of the company or to fund future growth.
A company which is not a public company and which is not allowed to offer its shares to the general public. Prospectus See Listing particulars. A company which has shares that can be purchased by the public and which has a share capital not less than a statutory minimum. Not all plcs are listed companies. An organisation responsible for maintaining a company s share register.