Include comments in search
© Copyright 2013
Tom Herod (406)
Adam Hart-Davies (1)
Broker News (123)
Central Banks (16)
CTA Firms (9)
Due Diligence (20)
Forex Trading (17)
Global Economy (170)
Huge Balls (6)
Insider's Guide (3)
This Week (9)
Who's Who (14)
world economic forum
IPO - Which Forex Company Is Next?
What is an IPO?
In December 2010 both
Forex Capital Markets
had successful initial public offerings (IPO). An IPO occurs when a company first sells its shares to the public.
In order to go public a company must have the approval of the Securities and Exchange Commission (SEC). The company obtains that approval by submitting an S-1 document which is its full disclosure document. Once the SEC appproves the S-1, the company is given permission to hold an IPO.
Next is shareholder approval. The company is private prior to the IPO and its investors must also approve moving forward with the IPO. The IPO process is a difficult one but beneficial if a company can complete it successfully.
Picking an Exchange
The New York Stock Exchange (NYSE) is an actual exchange with a physical location, while the NASDAQ is an
(OTC) market with no physical location but where trades are conducted electronically. A company pays NASDAQ about $160,000 every year to be listed on its exchange.
Part of the IPO process entails selecting the exchange through which its stock will be traded. In addition, its trading symbol must also be selected. Forex Capital Markets Inc., for example, trades on the NYSE under the symbol FXCM, while Forex International Trading Corporation trades
Why Do Companies Go Public?
An IPO enables a company to tap a large pool of investors to provide it with capital. When a company goes public the cash collected for the newly-issued shares goes directly to the company's coffers.
Once listed on its exchange, the company is able to issue additional common shares via a secondary offering and raising even more cash. This ability to quickly raise large amounts of capital from the market is a key reason many companies go public.
Besides raising capital for expansion, research and development, debt service, or mergers and acquisitions, there are other benefits to being a public company:
- Going public raises awareness for the company. It increases its profile, prestige and avenues for publicity.
- It increases liquidity for investors, employees, officers or directors who own stock in a private company which goes public. Going public enables these individuals an opportunity to sell their shares and reap the rewards of all their hard work.
Which Forex Companies Are Publicly Traded?
Many publicly traded banks, which already offer institutional currency exchange, also offer retail Forex trading, although the minimum deposit is usually $10,000. Here is a partial list of publicly traded Forex companies:
recently acquired ODL Group Limited with its already strong UK and European presence and continues to expand its looming Forex empire.
Gain Capital (NYSE:GCAP)
offers investors with a web-based trading platform.
has aggressively stepped up its retail Forex marketing efforts in recent months.
dbFX Deutsche Bank
ranked by Euromoney as #1 Foreign Exchange House in the World.
operates in more than 50 countries and from all major international centers but is
having problems maintaining spot FX market share
Knight Capital Group (Nasdaq:NITE)
Which Forex Companies Are Likely To Go Public Next?
As the Forex market matures and regulatory issues are clarified, it is more likely that more Forex companies will choose to go public. In our opinion, these are some likely candidates:
, Inc. 500's Fastest Growing FX Broker of 2010, is poised to go public with the appointment of new CEO Rafael Carrascosa.
continues to win industry awards and increase its international trader base of more than 29,000 clients in 140 countries.
Global Forex Trading
was founded in 1997 and serves customers in 100 countries worldwide. Their DealBook FX trading platform is one of the chief rivals to Metatrader.
, operates in more than 150 countries with monthly trading volumes exceeding $147 billion.
Currently rated 5.0 by 2 people
Currently 5/5 Stars.
Posted on May 25, 2011 14:58 by
Copyright © 2007-2011