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In economics, the Ã
 is that part of the economy which is both run for private profit
and is not controlled by the state. By contrast, enterprises that are part of the state are part of the
public sector; private, non-profit organizations are regarded as part of the voluntary sector.

With increasing concern for employee safety, and data and

asset theft, enterprises recognize the need to develop a more
comprehensive approach to protecting and managing their
resources - equipment, inventory, data, and people.
Although a simple concept, the reality of securing an
enterprise is quite complex. With hundreds if not thousands
of video devices, motion detectors, fire alarms, and access
control systems, obtaining a complete view of a potential
physical security incident, coordinating personnel and
reacting in real time is extremely difficult.

 

îY Information overload...false positives

îY ?nforcing consistent application of corporate
security policies
îY |entralizing and consolidating physical security
assets across properties due to corporate acquisitions
îY Identifying and managing situations in real time
before an emergency arises
îY Integrating and sharing information between
physical and digital security systems


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Ã
  
 (IPO) referred to simply as an "offering" or "flotation," is when
a company issues common stock or shares to the public for the first time. They are often issued
by smaller, younger companies seeking capital to expand, but can also be done by large
privately-owned companies looking to become publicly traded.

In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine
what type of security to issue (common or preferred), best offering price and time to bring it to
market.

An IPO can be a risky investment. For the individual investor, it is tough to predict what the
stock or shares will do on its initial day of trading and in the near future since there is often little
historical data with which to analyze the company. Also, most IPOs are of companies going
through a transitory growth period, and they are therefore subject to additional uncertainty
regarding their future value.



 
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A rights issue is offered to all existing shareholders individually and may be rejected, accepted in
full or accepted in part. Rights are often transferable, allowing the holder to sell them on the
open market. A right to a share is generally issued on a ratio basis (e.g. one-for-three rights
issue). Because the company receives shareholders' money in exchange for shares, a rights issue
is a source of capital.

  

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 is basically the process of generating a book of investor demand for the shares
during an IPO for efficient price discovery. Usually, the issuer appoints a major investment bank
to act as a book runner.

Book building is a common practice in developed countries and has recently been making
inroads into emerging markets as well, including India. The whole book building process is done
on-line.
c 
Puring the fixed period of time for which the subscription is open, the book runner collects bids
from investors at various prices, between the floor price and the cap price. Bids can be revised by
the bidder before the book closes. The process aims at tapping both wholesale and retail
investors. The final issue price is not determined until the end of the process when the book has
closed. After the close of the book building period, the book runner evaluates the collected bids
on the basis of certain evaluation criteria and sets the final issue price.

If demand is high enough, the book can be oversubscribed. In these case the greenshoe option is
triggered.

  c 

An Ã   Ã
is a call option on the common stock of a company, issued as a form
of non-cash compensation. Restrictions on the option (such as vesting and limited transferability)
attempt to align the holder's interest with those of the business' shareholders. If the company's
stock rises, holders of options experience a direct financial benefit. This gives employees an
incentive to behave in ways that will boost the company's stock price.

?mployee stock options are mostly offered to management as part of their executive
compensation package. They are also offered to lower staff, especially by businesses that are not
yet profitable. They can also be offered to non-employees: suppliers, consultants, lawyers and
promoters for services rendered.

  


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A   occurs when an underwriter, such as an investment bank or a syndicate,

purchases securities from an issuer before a preliminary prospectus is filed. The investment bank
(or underwriter) acts as principal rather than agent and thus actually "goes long" in the security.
The bank negotiates a price with the issuer (usually at a discount to the current market price, if
applicable).

The advantage of the bought deal from the issuer's perspective is that they do not have to worry
about financing risk (the risk that the financing can only be done at a discount too steep to
market price.) This is in contrast to a fully-marketed offering, where the underwriters have to
"market" the offering to prospective buyers, only after which the price is set.

The advantages of the bought deal from the underwriter's perspective include:

1.Y Bought deals are usually priced at a larger discount to market than fully marketed deals,
and thus a
be easier to sell; and
 Î.Y The issuer/client may only be willing to do a deal if it is bought (as it eliminates
execution or market risk.)

The disadvantage of the bought deal from the underwriter's perspective is that if it cannot sell the
securities, it must hold them. This is usually the result of the market price falling below the issue
price, which means the underwriter loses money. The underwriter also uses up its capital, which
would probably otherwise be put to better use (given sell-side investment banks are not usually
in the business of buying new issues of securities).

|ONV?RTIBL? BONP

|onvertible bonds are exchangeable at the option of the holder for ordinary shares under
specified terms and conditions. |onversion price for the shares is usually indicated at the time of
issue of convertible bonds. |onversion ratio is the number of ordinary share/shares that are
received in exchange for a convertible bond. When a convertible bond is issued the conversion
price is usually set above the prevailing market price of the ordinary share. A convertible bond is
exchanged at the will of the holder for a previously determined number of equity shares.

PRI|ING

The interest of the Government in the pricing policies of the public sector enterprises arises from
the fact that many of them are key industries and are engaged in the production of goods or the
provision of services which are basic to the life of the community and some of them have a
monopolistic element.

While formulating the pricing policies of units in the public sector, the following principles
should be kept in view:

(a)Y At the minimum, public enterprises should pay their way and not run in losses unless
there are clear and overriding reasons of public interest which are indicated I an open
directive issued by the government.
(b)Y In the case of public utilities and services greater stress should be laid on output than on return on
investment, the former being extended upto a level at which marginal cost is equal to price.
(c)Y While determining the price structure commensurate with the surplus expected from them, public
enterprises should keep the level of output as near the rated capacity as possible subject to the
volume of demand for the project.
(d)Y Public enterprises in the industrial and manufacturing field should aim at earning sufficient
surpluses to make a substantial contribution to capital development with their own earnings.

If the government requires a public undertaking to keep prices at an artificially low level, the
financial obligations of that undertaking should be revised. If an undertaking has to pursue a non-
profitable course of action under government directions, then the government should either
subsidise it or the enterprise should be entitled to ask for a downward revision of its financial
obligations.

PUBLI| INV? TM?NT BOARP

In 197Î the government set up a high-powered Public Investment Board to speed up approval of
public sector projects. All proposals for investment in public sector corporations or undertakings
involving Rs. 1 crore or more will be referred to the board. The constitution of this board is
designed to remove some major shortcomings in the current procedure of scrutinizing proposals
for investment in public sector. This procedure involves too many meetings at different levels
and at different places which tend to delay the investment scrutiny. Moreover, the basic and
broader issues get mixed up with the less important ones and cannot be brought up in clear focus
to high decision making levels sufficiently early. Besides, there is no fixed and identifiable high
level forum for investment decision.

The Public Investment Board will examine the board contours of an investment proposal in the
project formulation stage and will decide whether the feasibility report should be prepared. It
will take investment decision on proposals for investment, and will also consider proposals for
revision of cost estimates.

PUBLI| P?PO IT

Peposits with companies have come into prominence in recent years. Of these the more
important are the deposits accepted by trading and manufacturing companies. uch deposits have
been a traditional source of finance in India. The Indian |entral Banking ?nquiry committee in
1931 recognised the importance of public deposits in the financing of cotton textile industry in
India. As a result of general credit stringency, companies attempted to raise funds needed by
them directly from the public by offering interest rates on deposits placed with them well in
excess of rates for deposits of comparable periods paid by the banks. While to the depositor the
rate offered is higher than that offered by banks, the cost of deposits to the company is less than
the cost of borrowings from bank. Moreover the availability and volume of bank credit are
restricted by considerations of margin, security offered, periodical submission of statements, etc.
Further these deposits are available for comparatively longer terms than bank credit. This means
that companies cut down one set of intermediaries and borrow directly instead of through the
bank.