Please enjoy Springfield’s BBC School Report 2015!
Today I’ll be talking to you about some of the latest business news. But first, it is important to understand what some of the terminology means. A share is simply a divided-up unit of the value of a company. If a company is worth £50 million, and there are 50 million shares in issue, then each share is worth £1 (usually listed as 100p in the money pages). As the overall value of a company fluctuates, so does the share.
An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing equity in a form of stock and shares. If a company has never issued equity to the public, it’s known as an IPO. When a company goes public through an IPO, an investment bank evaluates the company’s current, projected performance and health to determine the IPO for the business.
The bank can do this by comparing the company with the IPO of similar companies, or by calculating the net present value of the firm. Finally, after the valuation and investigations, the firm must meet with the stock exchange which will determine if the share price is fair.
As of March 18th, the stock market has encountered many leaps and falls. An example of a leap would be in the favour of the bank Standard Chartered where they have improved 8.2% within a day. This could be because of their highly experienced bankers with investment plans, which is very similar to Lloyds Bank. It is a relatively large private bank company with around 1700 branches. Their company assets have remained stable and are set to rise, and their share price has had a positive trend since its founding. They are a top notch organisation which owns other small companies. Standard Chartered are an underdog company and have many reasons to succeed.
Smoking in cars: many smokers do it, but what about smoking in cars with children?
Soon, a fine of £50 will be issued to people who smoke or fail to prevent people from smoking in cars with young passengers. Regulations of this proposal have been laid before the government, and MPs will vote on these plans before the general election.
If these laws are passed, the £50 fine will be introduced on the 1st October 2015. The laws will be passed in England, Wales and Scotland. This could save the lungs, and therefore lives, of young people around the U.K, including people from our school.