Securities offerings and wealth

Securities offerings and wealth

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Corporate Finance (FIN 250)

Unit 4: Long-Term Financing

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of securities offerings and wealth.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Methods of selling securities: public offering, rights offering and private placement
• Analysis of rights offering and effect of rights offering on shareholders’ wealth

Detailed Microsyllabus

1. Offering methods

   1. Public offer, rights offer and private placement.
   2. Differences in audience and process.
   3. Use applicable issue materials.

2. Rights analysis

   1. Subscription terms and theoretical ex-rights value.
   2. Effect on existing shareholders under stated participation assumptions.
   3. Distinguish arithmetic valuation from a guaranteed market outcome.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 80–82.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.