London Stock Exchange (LSE)
london stock exchange (lse) – stock exchange in merged kingdom.
the london stock exchange is a stock exchange located in the city of london, london, merged kingdom. As of august 2010[update], the exchange had a market capitalisation of us$ 2. 63 trillion, making it the fourth largest stock exchange globally and the largest in europe.
the exchange was founded in 1801 and its current premises are located in paternoster square close to st paul’s cathedral in the city of london. The exchange is percentage of the london stock exchange group.
about the exchange.
origin of percentage marketing.
the sell in shares in london started out with the demand to finance two voyages: the muscovy company’s attempt to reach china by way of the white sea north of russia, and the east india company voyage to india and the east. The marketing in the stocks of the second company started out in 1688.
unable to finance these expensive journeys privately, the companies raised the money by marketing shares to merchants, giving them a right to a small percentage of any profits in the long run made.
exchange.
the idea soon caught on (one of the earliest was the earl of bedford’s strategy to drain the fens). It is guessed that by 1695, there were 140 joint-stock companies. The sell in shares was centred around the city’s modify alley in two coffee shops: garraway’s and jonathan’s. The broker, john castaing, published the prices of stocks and commodities called the course of the exchange and other things in these coffee shops.
licensing of brokers
in 1697, a law was passed to “ restrain the number and ill-exercise of brokers and stockjobbers” following more than one insider marketing and market-rigging incidents. It required all brokers to be licensed and to take an oath promising to act lawfully.
membership of foreigners.
previously, all members of the london stock exchange had to be british as per rule 21. The nationality requirement was lifted in 1970. This permitted foreigners to become members of the london stock exchange, the basic approved membership being that of egyptian prince abbas hilmi.
the south sea bubble.
the modify alley exchange thrived. Notwithstanding, it suffered a setback in 1720.
much excitement was caused by the south sea company, stoked by brokers, the company’s possessor john blunt and the government. Having configured the unprofitable company nine years antecedently, the government hoped to wipe out the big debts assembled by providing shares to the public.
shares in the establishment, which had started at £128 each at the start out of the year, were soon fetching as much as £1,050 by june. The bubble inevitably burst, with percentage prices plunging to £175, then £124.
the incident caused outcry, forcing the government to pass legislation to prevent another bubble, and it took a long time for the stock exchange to recover.
coat of arms.
the exchange received its own coat of arms in 1923. Its motto is dictum meum pactum, “ my word is my bond”.
ira bomb.
on 20 july 1990 a bomb planted by the ira exploded in the men’s toilets behind the visitors’ gallery. The area had already been evacuated and not a single soul was injured. The long term trend towards electronic marketing had been reducing the exchange’s status as a visitant attraction and, although the gallery reopened, it was closed permanently in 1992.
locations.
threadneedle street and capel court
jonathan’s burnt down in 1748, and this, plus dissatisfaction with the overcrowding in the alley, made the brokers build a new jonathan’s on threadneedle street, in addition as charging an entrance fee. The building was soon renamed the stock exchange, only to be renamed again as the stock subscription room in 1801, with new membership regulatings.
however, this too proved unsatisfactory, and the exchange moved to the newly built capel court in the same year. The exchange had recovered by the 1820s, bolstered by the growth of the railways, canals, mining and insurance industries (there were, notwithstanding, difficulties with stags and dividend payments). Territorial stock exchanges were formed throughout the uk. Bonds (or gilt-edged securities) in addition started to be traded.
the london stock exchange tower.
the previous stock exchange tower, based in threadneedle street/old broad street was opened by queen elizabeth ii in 1972 and housed the marketing floor where traders would traditionally meet to conduct business. This became for the most part redundant with the coming of the big bang on 27 october 1986, which deregulated numerous of the stock exchange’s actions. It annihilated limited commissions on security trades and permitted securities firms to act as brokers and dealers. It in addition enabled an increased use of computerised schemes that permitted transaction rooms to take precedence over face to face marketing.
paternoster square
in july 2004, the london stock exchange moved from threadneedle street to paternoster square (ec4) close to st paul’s cathedral, still within the “ square mile” (the city of london).
it was officially opened by queen elizabeth ii once again, accompanied by the duke of edinburgh, on 27 july 2004.
pursuit of lse by potential merger partners.
nasdaq
in december 2005, the london stock exchange rejected a £1. 6 billion takeover offer from macquarie bank. The london stock exchange described the offer as “ derisory”, a sentiment echoed by stockholders in the exchange. Shortly after macquarie withdrew its offer, the lse received an unsolicited approach from nasdaq valuing the establishment at £2. 4 billion. This too it rejected. Nasdaq later pulled its bid, and less than two weeks later on 11 april 2006, struck a deal with lse’s largest share holder, ameriprise financial’s threadneedle asset management unit, to acquire all of that firm’s stake, consisting of 35. 4 million shares, at £11. 75 per percentage. Nasdaq in addition purchased 2. 69 million further and added shares, resulting in a total stake of 15%. While the marketer of those shares was undisclosed, it occurred simultaneously with a sale by scottish widows of 2. 69 million shares. The move was seen as an campaign to strength lse to the negotiating table, in addition as to limit the exchange’s highly important flexibleness.
subsequent purchases increased nasdaq’s stake to 25. 1%, holding off competing bids for assorted months. Merged kingdom financial rules required that nasdaq wait for a amount of time of time before renewing its campaign. On 20 november 2006, within a month or two of the expiration of this amount of time, nasdaq increased its stake to 28. 75% and launched a hostile offer at the minimum permitted bid of £12. 43 per percentage, which was the most eminent nasdaq had remunerated on the open market for its existent shares. The lse immediately rejected this bid, stating that it “ considerably undervalues” the establishment.
nasdaq revised its offer (characterized as an “ unsolicited” bid, rather than a “ hostile takeover attempt”) on 12 december 2006, indicating that it is going to be capable to complete the deal with 50% (plus one percentage) of lse’s stock, rather than the 90% it had been seeking. The u. S. Exchange did not, notwithstanding, raise its bid. Numerous hedge funds had assembled big positions within the lse, and numerous managing directors of those funds, in addition as furse, indicated that the bid was still not satisfactory. Nasdaq’s bid was made more difficult because it had described its offer as “ final”, which, underneath british bidding rules, restricted their capacity to raise its offer except underneath certain circumstances.
in the end, nasdaq’s offer was roundly rejected by lse stockholders. Having received acceptances of only 0. 41% of rest of the register by the deadline on 10 february 2007, nasdaq’s offer duly lapsed. Responding to the news, chris gibson-smith, the lse’s chairman, said: “ the exchange’s strategy has produced outstanding results for stockholders by alleviating a structural shift in volume growth in an growingly global market at the centre of the world’s equity flows. The exchange intends to construct on its especially worthful brand by progressing various competitory, collaborative and highly important prospects, thereby reinforcing its unambiguously powerful position in a fast evolving global sector. “
on 20 august 2007, nasdaq announced that it was abandoning its plan to take over the lse and subsequently seek for choices to divest its 31% (61. 3 million shares) shareholding in the establishment in light of its failed takeover attempt. In september 2007, nasdaq accorded to sell the nearly all of its shares to borse dubai, leaving the merged arab emirates-based exchange with 28% of the lse.
products & services.
the london stock exchange has four core areas:
equity markets: enables companies from across the world to raise capital. There are four indispensable markets:
the main market.
aim, established in 1995 for smaller companies.
the professional securities market, for raising capital through debt securities or depositary receipts.
the specialist fund market, “ designed rigorously for the necessities of highly specialised investment entities seeking institutional, professional and highly well-educated investors. “
trading services: market for marketing in a range of securities, including uk and global equities, debt, covered warrantees, exchange traded funds (etfs), exchange traded commodities (etcs), reits, limited interest, contracts for divergence (cfds) and depositary receipts.
information services: the london stock exchange provides real-time prices, news and other financial data. It owns the regulatory news service
derivatives: the exchange manages edx london, a contributor to derivatives business produced in 2003 with an intention of bringing the money equity and derivatives markets closer together.
technology.
the basic lse marketing platform, based on microsoft’s. Net framework, was produced by microsoft and accenture. Microsoft applied the lse software as a live illustration of the supposed superiority of windows over linux in the “ get the facts” campaign, claiming that the lse strategy provided “ five nines” reliability. For microsoft, lse was a good combining of a highly visible exchange and yet a comparatively modest it problem. After suffering extended downtime and unreliability the lse announced in 2009 that it was planning to switch to linux in 2010.
hours.
normal marketing sessions are from 08:00 to 16:30 daily of the week except saturdays, sundays and holidays announced by the exchange beforehand.
levels.
as at 31 july 2010, the exchange listed 2,713 companies, consisting of:
uk main market: 1,114
Global main market: 327
Intention: 1,222
Professional securities market (psm): 44
Specialist fund market (sfm): 6
Posted by on Oct 29 2010. Filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
