Economy, asked by raghwendra5703, 1 year ago

Explain the pre and post issue management by merchant banks

Answers

Answered by ansari7070

Here is your answer :-

A merchant bank is a company that deals mostly in international finance, business loans for companies and underwriting. These banks are experts in international trade, which makes them specialists in dealing with multinational corporations. A merchant bank may perform some of the same services as an investment bank, but it does not provide regular banking services to the general public. One role of a merchant bank is to provide financing to large corporations that do business overseas. Assume, for example, that XYZ Company is based in the United States and decides to purchase a supplier that is based in Germany. Merchant banker is any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager -consultant, advisor or rendering corporate advisory services in relation to such issue management in merchant banking.

O HOPETHIS ANSWER WILL HELP YOU.......(^_^♪)

Answered by gratefuljarette

The pre issue management refers to process of coordinating the activities on issuing of the shares and setting the price of the issue. The post issue management deals with activities of collecting, evaluating the forms and allotting the certificates

Explanation:

Issue management of merchant banks refer to the procedure of managing and issuing of equity shares, debentures bonds and more. There are number of factors and activities that are involved with the management of the issues depending on the market conditions
Pre issue management is done within a specific time period and it involves marketing, and coordinating activities needed for issuing the shares. The price of the shares are set at the time of issue.
The post management activities involve collecting the forms and the monies along with checking the forms and working out the method of allotment of the shares