Understanding the Markets

The analysts’ findings are often crucial in the decision-making

process by fund managers and as a result there is considerable store

placed on a broker that has the top-rated analysts for particular

sectors. Fund managers will, of course, also receive presentations

directly from companies, particularly if the company is wishing to

raise money or change the capital structure by, for instance, having a

rights issue or share split, and, of course, if there is any take-over or

merger activity. In fact whenever the company is seeking shareholder

support it needs to be very active in making its case to those

shareholders.

Shares, like bonds, are first issued ...