Initial public offering
Initial public offering or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and also retail investors. Through this process, colloquially known as floating, or going public, a held company is transformed into a public company. Initial public offerings can be used: to raise new equity capital for the company concerned. After the IPO, shares traded in the open market are known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms and as a proportion of the total share capital. Although IPO offers many benefits, there are significant costs involved, chiefly those associated with the process such as banking and legal fees, the ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter.
Underwriters provide several services, including help with assessing the value of shares and establishing a public market for shares. Alternative methods such as the Dutch auction have been explored and applied for several IPOs; the earliest form of a company which issued public shares was the case of the publicani during the Roman Republic. Like modern joint-stock companies, the publicani were legal bodies independent of their members whose ownership was divided into shares, or partes. There is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum, near the Temple of Castor and Pollux; the shares quaestors. Mere evidence remains of the prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicani lost favor with the rise of the Empire. In the early modern period, the Dutch were financial innovators who helped lay the foundations of modern financial systems; the first modern IPO occurred in March 1602 when the Dutch East India Company offered shares of the company to the public in order to raise capital.
The Dutch East India Company became the first company in history to issue bonds and shares of stock to the general public. In other words, the VOC was the first publicly traded company, because it was the first company to be actually listed on an official stock exchange. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fledged capital market: corporate shareholders; as Edward Stringham notes, "companies with transferable shares date back to classical Rome, but these were not enduring endeavors and no considerable secondary market existed."In the United States, the first IPO was the public offering of Bank of North America around 1783. When a company lists its securities on a public exchange, the money paid by the investing public for the newly-issued shares goes directly to the company as well as to any early private investors who opt to sell all or a portion of their holdings as part of the larger IPO.
An IPO, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of debt, or working capital. A company selling common shares is never required to repay the capital to its public investors; those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the open market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. After the IPO, once shares are traded in the open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a fixed price, through a secondary market offering; this type of offering is not dilutive. Once a company is listed, it is able to issue additional common shares in a number of different ways, one of, the follow-on offering.
This method provides capital for various corporate purposes through the issuance of equity without incurring any debt. This ability to raise large amounts of capital from the marketplace is a key reason many companies seek to go public. An IPO accords several benefits to the private company: Enlarging and diversifying equity base Enabling cheaper access to capital Increasing exposure and public image Attracting and retaining better management and employees through liquid equity participation Facilitating acquisitions Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc. There are several disadvantages to completing an initial public offering: Significant legal, account
Compare.com is a comparison shopping website for intangible products, most notably car insurance, with headquarters in Richmond, VA. Compare.com is a sister company of Confused.com, the United Kingdom's first car insurance comparison site, owned by Admiral Group, plc. Insurance carriers on the compare.com panel are contractually obligated to honor the rate presented on compare.com’s site, as long as the user’s information is entered. Compare.com charges the auto insurer on a cost-per-sale basis. Compare.com was launched with the majority of its financial backing from Admiral Group. Other investors include Mapfre, which owns 5.6% and White Mountains Insurance Group, the former owners of Esurance, which owns 18.4%. Diane Engelhardt, wife of former Admiral Group CEO Henry Englelhardt, owns 17% as the result of an investment on November 1, 2018. Compare.com's President and CEO, Andrew Rose and former CEO of Elephant Insurance, worked at Countrywide and Progressive prior to launching compare.com. When compare.com began delivering quotes to customers, they did so with partnerships with five carriers.
As of March 4, 2016, compare.com works with over 60 carriers to deliver more insurance comparisons to customers. As of November 1, 2018 Compare.com has received $185 million dollars in total investment, making it one of the largest investments in the Insurtech category. In January 2015, the New York Times revealed that Compare.com had formed a partnership with Google, offering them access to Compare.com’s panel of carriers in exchange for a share of the royalties paid by the carrier. They join Bolt Solutions in partnering with Google's platform. Compare.com worked with Google Compare for the duration of their existence in the American car insurance comparison market, until Google Compare announced that they will be withdrawing their service from the market. Compare.com operates under primary ownership of Admiral Group, which operates 14 brands in seven countries. Other companies owned by Admiral include: Confused.com Admiral Insurance Diamond Insurance Elephant Insurance Balumba Qualitas Auto Rastreator Assicurazioni ConTe L’olivier assurance auto LeLynx In February 2016, compare.com began advertising their service nationally.
The advertising campaign features Agent Compare, who works in an underground facility to bring high-tech solutions to the auto insurance industry. Agent Compare promises to "Save Humanity from high insurance rates, one human at a time."
Lloyd's of London
Lloyd's of London known as Lloyd's, is an insurance and reinsurance market located in London, United Kingdom. Unlike most of its competitors in the industry, it is not an insurance company; these underwriters, or "members", are a collection of both corporations and private individuals, the latter being traditionally known as "Names". The business underwritten at Lloyd's is predominantly general insurance and reinsurance, although a small number of syndicates write term life assurance; the market has its roots in marine insurance and was founded by Edward Lloyd at his coffee house on Tower Street in c. 1686. Today, it has a dedicated building on Lime Street within which business is transacted at each syndicate's "box" in the underwriting "Room", with the insurance policy documentation being known traditionally as a "slip"; the market's motto is Fidentia, Latin for "confidence", it is associated with the Latin phrase uberrima fides, or "utmost good faith", representing the relationship between underwriters and brokers.
Having survived multiple scandals and significant challenges through the second half of the 20th century, most notably the asbestosis affair, Lloyd's today promotes its strong financial "chain of security" available to promptly pay all valid claims. At the end of 2018 this chain consisted of £53.5 billion of syndicate-level assets. In 2018 there were 84 syndicates managed by 55 managing agencies that collectively wrote £35.5bn of gross premiums on risks placed by 303 approved brokers. Around 50 per cent of premiums emanated from North America, 30 per cent from Europe and 20 per cent from the rest of the world. Direct insurance represented around 70 per cent of the premiums covering property and casualty, while the remaining 30 per cent was reinsurance; the market collectively reported a pre-tax loss of £1bn for 2018, resulting from above-average major claims and a weak investment environment. The market began in Lloyd's Coffee House, owned by Edward Lloyd, in around 1686 on Tower Street in the City of London.
This establishment was a popular place for sailors and ship-owners, Lloyd catered to them with reliable shipping news. The coffee house soon became recognised as an ideal place for obtaining marine insurance; the shop was frequented by mariners involved in the slave trade. Historian Eric Williams notes: "Lloyd's, like other insurance companies, insured slaves and slave ships, was vitally interested in legal decisions as to what constituted'natural death' and'perils of the sea'." Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the early 19th century. Just after Christmas 1691, the small club of marine insurance underwriters relocated to Lombard Street; this arrangement carried on until 1773, long after the death of Edward Lloyd in 1713, when the participating members of the insurance arrangement formed a committee and underwriter John Julius Angerstein acquired two rooms at the Royal Exchange in Cornhill for "The Society of Lloyd's". The Royal Exchange was destroyed by fire in 1838.
It was rebuilt by 1844. In 1871, the first Lloyd's Act was passed in Parliament which gave the business a sound legal footing. Around that time, it was unusual for a Lloyd's syndicate to have six backers. A marine underwriter named Frederick Marten is credited for first identifying this issue and creating the first "large syndicate" of 12 capacity providers. By the 1880s Marten's syndicate had outgrown many of the major insurance companies outside Lloyd's. A subsequent Lloyd's Act in 1911 set out the Society's objectives, which include the promotion of its members' interests and the collection and dissemination of information. On 18 April 1906 a major earthquake and resulting fires destroyed over 80 per cent of the city of San Francisco; this event was to have a profound influence on building practices, risk modelling and the insurance industry. Lloyd's losses from the earthquake and fires were substantial though the writing of insurance business overseas was viewed with some wariness at the time.
While some insurance companies were denying claims for fire damage under their earthquake policies or vice versa, one of Lloyd's leading underwriters, Cuthbert Heath, famously instructed his San Francisco agent to "pay all of our policy-holders in full, irrespective of the terms of their policies". The prompt and full payment of all claims helped to cement Lloyd's reputation for reliable claim payments and as an important trading partner for US brokers and policyholders, it was estimated that around 90 per cent of the damage to the city was caused by the resultant fires, as such since 1906 fire following earthquake has been a specified insured peril under most policies. Heath is credited for introducing the now used "excess of loss" reinsurance protection for insurers following the San Francisco disaster. Heath's background was that he became an underwriting member of Lloyd's in 1880, upon reaching the minimum age of 21, on J. S. Burrows' syndicate. Within a year he was underwriting for himself on a three-man syndicate, in 1883 he opened a brokerage business.
In 1885 he wrote the first fire reinsurance contra
Clark's Pies colloquially nicknamed "Clarkies" or "Clarksies," are well-known meat pies that originated in Cardiff, can now be found in Bristol and the South of Wales. A printed paper bag from the 1930s states that the business was established in 1909. A shop opened on Llanmaes Street in Roath, Cardiff in 1913. Developed by Mary Clark, a second shop opened on Cowbridge Road East in nearby Canton in the 1930s. During World War II the first shop was closed due to wartime meat rationing. Dennis Dutch, Mary Clark's grandson, opened the third pie shop and bakery on 10 May 1955 in Bromsgrove Street, Grangetown. In 2005, Dutch celebrated the shop's 50th anniversary; the family have since sold Clark's Pies in Cardiff to another bakery ending their association with Clark's Pies In the 1920s, Percy Clark left his mother Mary to branch out on his own, establishing a shop in North Street, Bristol, where he built his own business. The shop passed to Percy's sons, John and Roger Clark, who have all since retired.
Keith Prested now owns Clark's Pies Ltd along with his partner, Roger's daughter, Dawn Clark, who continues in the family tradition as a director of the business, still located at 259 North Street, Ashton Gate, Bristol where it has been making pies and pasties continuously since the 1930s. The exact recipe of the pie filling is a guarded secret containing beef and gravy. Unusually for a pie, the pastry is thick enough not to require a foil tray; each pie has the word "CLARPIE" stamped into the pastry. Knives and forks are not required. Microwaving the pie will negate these qualities, making the pie pastry soft. A Clark's Tash is the nickname given to burning the upper lip with the hot filling. Frank Hennessy: I can't remember not having a Clark's Pie; as soon as Cardiffians saw the Millennium Stadium they fell in love with it. They didn't realise why. It's. Ian Holloway, former Bristol Rovers player/manager, erroneously claims the pie to be a Bristol invention: There's some great things that have come out of Bristol – Clark's pies, a couple of football teams....
Not sure about me, though! Official website Clarks Pies Website Secret of Clark's success kept under the pie lid – The Western Mail BBC South Wales East Food Photo gallery of the Clark's Pies Anniversary
HBOS plc is a banking and insurance company in the United Kingdom, a wholly owned subsidiary of the Lloyds Banking Group, having been taken over in January 2009. It is the holding company for Bank of Scotland plc, which operates the Bank of Scotland and Halifax brands in the UK, as well as HBOS Australia and HBOS Insurance & Investment Group Limited, the group's insurance division. HBOS was formed by the Bank of Scotland; the formation of HBOS was heralded as creating a fifth force in British banking as it created a company of comparable size and stature to the established Big Four UK retail banks. It was the UK's largest mortgage lender; the HBOS Group Reorganisation Act 2006 saw the transfer of Halifax plc to the Bank of Scotland, now a registered public limited company, Bank of Scotland plc. Although HBOS is not an acronym of any specific words, it is presumed to stand for Halifax Bank of Scotland; the corporate headquarters of the group were located on The Mound in Edinburgh, the former head office of the Bank of Scotland.
Operational headquarters were in Halifax, West Yorkshire, the former head office of Halifax. The group was acquired and folded into Lloyds Banking Group through a takeover by Lloyds TSB on Monday 19 January 2009 after both sets of shareholders approved the deal. Lloyds Banking Group has stated that the new group will continue to use The Mound as the headquarters for its Scottish operations and will not cease the issue of Scottish bank notes. HBOS was formed by a merger of Halifax and Bank of Scotland in 2001, Halifax having demutualised and floated four years prior. In 2006, HBOS secured the passing of the HBOS Group Reorganisation Act 2006, a private Act of Parliament that rationalised the bank's corporate structure; the act allowed HBOS to make the Governor and Company of the Bank of Scotland a public limited company, Bank of Scotland plc, which became the principal banking subsidiary of HBOS. Halifax plc transferred its undertakings to Bank of Scotland plc, although the brand name was retained, Halifax began to operate under the latter's UK banking licence.
The provisions in the Act were implemented on 17 September 2007. The share price peaked at over 1150p in February 2007. In 2004, Paul Moore, HBOS head of Group Regulatory Risk, warned senior directors at HBOS about excessive risk-taking, he was dismissed, his concerns not acted on. In March 2008, HBOS shares fell 17 percent amid false rumours that it had asked the Bank of England for emergency funding; the Financial Services Authority conducted an investigation as to whether short selling had any links with the rumours. It concluded. On 17 September 2008 shortly after the demise of Lehman Brothers, HBOS's share price suffered wild fluctuations between 88p and 220p per share, despite the FSA's assurances as to its liquidity and exposure to the wider credit crunch; however that day, the BBC reported that HBOS was in advanced takeover talks with Lloyds TSB to create a "superbank" with 38 million customers. This was confirmed by HBOS; the BBC suggested that shareholders would be offered up to £3.00 per share, causing the share price to rise, but retracted that comment.
That day, the price was set at 0.83 Lloyds shares for each HBOS share, equivalent to 232p per share, less than the 275p price at which HBOS raised funds earlier in 2008. The price was altered to 0.605 Lloyds shares per HBOS share. To avoid another Northern Rock-style collapse, the UK government announced that should the takeover go ahead, they would allow it to bypass competition law. Alex Salmond, Scotland's First Minister an economist, said of the takeover: "I am angry that we can have a situation where a bank can be forced into a merger by a bunch of short-selling spivs and speculators in the financial markets." Vince Cable, the Liberal Democrats' economic spokesman mocked so-called "masters of the universe," whose hedge funds profited from short-selling. On 18 September 2008, the terms of the recommended offer for HBOS by Lloyds TSB were announced; the deal was concluded on 19 January 2009. The three main conditions for the acquisition were: Three quarters of HBOS shareholders voted in favour of the board's actions.
A group of Scottish businessmen challenged the right of the UK government to approve the deal by over-ruling UK competition law, but this was rejected. The takeover was approved by HBOS shareholders on 12 December. Prime Minister Gordon Brown brokered the deal with Lloyds TSB. An official said: "It is not the role of a Prime Minister to tell a City institution what to do"; the Lloyds TSB board have stated that merchant banks Merrill Lynch and Morgan Stanley were amongst the advisers recommending the takeover. Lloyds Banking Group said Edinburgh-based HBOS, which it absorbed in January, made a pre-tax loss of £10.8bn in 2008. Andy Hornby, the former chief executive of HBOS and Lord Stevenson of Coddenham, its former chairman, appeared before the Commons Treasury Committee to answer for the near-collapse of the bank. Mr Hornby said: "I'm sorry what happened at HBOS, it has affected shareholders, many of whom are colleagues, it's affected the communities in which we live and serve, it's affected taxpayers, we are sorry for the turn of events that has brought it about."
On 13 October 2008, Gordon Brown's announcement that government must be a "rock of stability" resulted to an "unprecedented but essential" government action: the Treasury would infuse £37 billion of new capital into Royal Bank of Scotland Group Plc, Lloyds
The pound sterling known as the pound and less referred to as sterling, is the official currency of the United Kingdom, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, Tristan da Cunha. It is subdivided into 100 pence. A number of nations that do not use sterling have currencies called the pound. Sterling is the third most-traded currency in the foreign exchange market, after the United States dollar, the euro. Together with those two currencies and the Chinese yuan, it forms the basket of currencies which calculate the value of IMF special drawing rights. Sterling is the third most-held reserve currency in global reserves; the British Crown dependencies of Guernsey and the Isle of Man produce their own local issues of sterling which are considered equivalent to UK sterling in their respective regions. The pound sterling is used in Gibraltar, the Falkland Islands, Saint Helena and Ascension Island in Saint Helena and Tristan da Cunha; the Bank of England is the central bank for the pound sterling, issuing its own coins and banknotes, regulating issuance of banknotes by private banks in Scotland and Northern Ireland.
Banknotes issued by other jurisdictions are not regulated by the Bank of England. The full official name pound sterling, is used in formal contexts and when it is necessary to distinguish the United Kingdom currency from other currencies with the same name. Otherwise the term pound is used; the currency name is sometimes abbreviated to just sterling in the wholesale financial markets, but not when referring to specific amounts. The abbreviations "ster." and "stg." are sometimes used. The term "British pound" is sometimes incorrectly used in less formal contexts, it is not an official name of the currency; the exchange rate of the pound sterling against the US dollar is referred to as "cable" in the wholesale foreign exchange markets. The origins of this term are attributed to the fact that in the 1800s, the GBP/USD exchange rate was transmitted via transatlantic cable. Forex traders of GBP/USD are sometimes referred to as "cable dealers". GBP/USD is now the only currency pair with its own name in the foreign exchange markets, after IEP/USD, known as "wire" in the forward FX markets, no longer exists after the Irish Pound was replaced by the euro in 1999.
There is apparent convergence of opinion regarding the origin of the term "pound sterling", toward its derivation from the name of a small Norman silver coin, away from its association with Easterlings or other etymologies. Hence, the Oxford English Dictionary state that the "most plausible" etymology is derivation from the Old English steorra for "star" with the added diminutive suffix "-ling", to mean "little star" and to refer to a silver penny of the English Normans; as another established source notes, the compound expression was derived: However, the perceived narrow window of the issuance of this coin, the fact that coin designs changed in the period in question, led Philip Grierson to reject this in favour of a more complex theory. Another argument that the Hanseatic League was the origin for both the origin of its definition and manufacture, in its name is that the German name for the Baltic is "Ost See", or "East Sea", from this the Baltic merchants were called "Osterlings", or "Easterlings".
In 1260, Henry III granted them a charter of protection and land for their Kontor, the Steelyard of London, which by the 1340s was called "Easterlings Hall", or Esterlingeshalle. Because the League's money was not debased like that of England, English traders stipulated to be paid in pounds of the "Easterlings", contracted to "'sterling". For further discussion of the etymology of "sterling", see sterling silver; the currency sign for the pound is £, written with a single cross-bar, though a version with a double cross-bar is sometimes seen. This symbol derives from medieval Latin documents; the ISO 4217 currency code is GBP, formed from "GB", the ISO 3166-1 alpha-2 code for the United Kingdom, the first letter of "pound". It does not stand for "Great Britain Pound" or "Great British Pound"; the abbreviation "UKP" is used but this is non-standard because the ISO 3166 country code for the United Kingdom is GB. The Crown dependencies use their own codes: GGP, JEP and IMP. Stocks are traded in pence, so traders may refer to pence sterling, GBX, when listing stock prices.
A common slang term for the pound sterling or pound is quid, singular and plural, except in the common phrase "quids in!". The term may have come via Italian immigrants from "scudo", the name for a number of coins used in Italy until the 19th century.
The United Kingdom the United Kingdom of Great Britain and Northern Ireland, sometimes referred to as Britain, is a sovereign country located off the north-western coast of the European mainland. The United Kingdom includes the island of Great Britain, the north-eastern part of the island of Ireland, many smaller islands. Northern Ireland is the only part of the United Kingdom that shares a land border with another sovereign state, the Republic of Ireland. Apart from this land border, the United Kingdom is surrounded by the Atlantic Ocean, with the North Sea to the east, the English Channel to the south and the Celtic Sea to the south-west, giving it the 12th-longest coastline in the world; the Irish Sea lies between Great Ireland. With an area of 242,500 square kilometres, the United Kingdom is the 78th-largest sovereign state in the world, it is the 22nd-most populous country, with an estimated 66.0 million inhabitants in 2017. The UK is constitutional monarchy; the current monarch is Queen Elizabeth II, who has reigned since 1952, making her the longest-serving current head of state.
The United Kingdom's capital and largest city is London, a global city and financial centre with an urban area population of 10.3 million. Other major urban areas in the UK include Greater Manchester, the West Midlands and West Yorkshire conurbations, Greater Glasgow and the Liverpool Built-up Area; the United Kingdom consists of four constituent countries: England, Scotland and Northern Ireland. Their capitals are London, Edinburgh and Belfast, respectively. Apart from England, the countries have their own devolved governments, each with varying powers, but such power is delegated by the Parliament of the United Kingdom, which may enact laws unilaterally altering or abolishing devolution; the nearby Isle of Man, Bailiwick of Guernsey and Bailiwick of Jersey are not part of the UK, being Crown dependencies with the British Government responsible for defence and international representation. The medieval conquest and subsequent annexation of Wales by the Kingdom of England, followed by the union between England and Scotland in 1707 to form the Kingdom of Great Britain, the union in 1801 of Great Britain with the Kingdom of Ireland created the United Kingdom of Great Britain and Ireland.
Five-sixths of Ireland seceded from the UK in 1922, leaving the present formulation of the United Kingdom of Great Britain and Northern Ireland. There are fourteen British Overseas Territories, the remnants of the British Empire which, at its height in the 1920s, encompassed a quarter of the world's land mass and was the largest empire in history. British influence can be observed in the language and political systems of many of its former colonies; the United Kingdom is a developed country and has the world's fifth-largest economy by nominal GDP and ninth-largest economy by purchasing power parity. It has a high-income economy and has a high Human Development Index rating, ranking 14th in the world, it was the world's first industrialised country and the world's foremost power during the 19th and early 20th centuries. The UK remains a great power, with considerable economic, military and political influence internationally, it is sixth in military expenditure in the world. It has been a permanent member of the United Nations Security Council since its first session in 1946.
It has been a leading member state of the European Union and its predecessor, the European Economic Community, since 1973. The United Kingdom is a member of the Commonwealth of Nations, the Council of Europe, the G7, the G20, NATO, the Organisation for Economic Co-operation and Development and the World Trade Organization; the 1707 Acts of Union declared that the kingdoms of England and Scotland were "United into One Kingdom by the Name of Great Britain". The term "United Kingdom" has been used as a description for the former kingdom of Great Britain, although its official name from 1707 to 1800 was "Great Britain"; the Acts of Union 1800 united the kingdom of Great Britain and the kingdom of Ireland in 1801, forming the United Kingdom of Great Britain and Ireland. Following the partition of Ireland and the independence of the Irish Free State in 1922, which left Northern Ireland as the only part of the island of Ireland within the United Kingdom, the name was changed to the "United Kingdom of Great Britain and Northern Ireland".
Although the United Kingdom is a sovereign country, Scotland and Northern Ireland are widely referred to as countries. The UK Prime Minister's website has used the phrase "countries within a country" to describe the United Kingdom; some statistical summaries, such as those for the twelve NUTS 1 regions of the United Kingdom refer to Scotland and Northern Ireland as "regions". Northern Ireland is referred to as a "province". With regard to Northern Ireland, the descriptive name used "can be controversial, with the choice revealing one's political preferences"; the term "Great Britain" conventionally refers to the island of Great Britain, or politically to England and Wales in combination. However, it is sometimes used as a loose synonym for the United Kingdom as a whole; the term "Britain" is used both as a synonym for Great Britain, as a synonym for the United Kingdom. Usage is mixed, with the BBC preferring to use Britain as shorthand only for Great Britain and the UK Government, while accepting that both terms refer to the United K