It is very difficult to invest in the financial markets, so we have to learn the basics to feel confident and move forward investment in the bigger financial institutions. The main purpose of virtual stock exchange is to help the small to medium businesses raise capital for growth, in exchange for shares. It has been the main step for those small and medium companies whose business is not of that scale that they could trade on that bigger level, as on the London stock exchange and the privet investors usually have limited access to good quality, expanding, limited companies. The virtual exchange has been provided to those investors an interesting opportunity.
It is costly and time consuming to get the information relation investment without a proper base and virtual provides these small investors a proper plat form has grown to a large extent out of this realization. Access to finance often remains one of the main factors on selling up and developing SMEs. Public authorities share issues relating to the formulation of programs that actually address genuine equity gaps and lack of sufficiently varied funding procurement channels available to SMEs. Ofex in UK, is an independent market focused on SMEs. In autumn 2005, advantage west midlands put in place regional SME share exchange named '' INVEST BX'' aiming at helping SMEs to raise money through web based stock exchange, this financial territory is often referred to as the equity gap. The smaller amounts can often be raised by borrowing and larger companies wishing to raise very large amounts have the opportunity, and provided they have a large enough turnover, high enough profits and good enough good prospects to engage in a stock exchange listing or listing in its smaller market, the Alternative Investment Market (AIM). This new instrument will provide a better liquidity of the regional access to finance market. Invest bx has been launched as online exchange for west midlands small firms to raise capital.
The smaller companies have a higher investment risk then larger or more established companies, invest bx securities are not admitted to the list of United Kingdom listing authority or any other Recognized Investment exchange 'Invest bx is the appointed representative of the Share Centre which is a member of the London stock exchange and authorized and regulated by the Financial Services. The invest bx is the first virtual trading platform in the platform, invest bx raises the equity on behalf of the companies unlike traditional markets that rely on the third parties.
ADVANTAGES OF INVEST BX
Opportunity for smaller companies
The invest bx has incorporated the stock market for the West Midland, It has been opens the opportunities for the all smaller and medium companies (SME)s to raise the capital for growth in exchange of the share and the smaller companies means which do not have that a large capital to invest on London stock exchange. It provides platform for the smaller and medium companies so that collect wealth in the exchange shares, and the invest bx provide share dealing and invest advice services and administered by The Share Centre Limited.
It is better than other exchanges like AIM
The invest bx is better than other exchanges like AIM and It not only make admission to public life significantly easier than PLUS Markets or AIM, the formula has also been designed specifically to keep professional advisory costs down. Its aim is that straightforward for companies to get their shares traded in publicly means open market buy and sell, and while the liquidity in those stocks will never meet the level of other, larger exchanges, Invest bx provide a truly accessible trading platform.
It is good for new companies
The invest bx is extremely good for the every young means new companies to provide the all investment opportunities and the prices of shares and the profits from them might be go down as well as up but the investors may get back less than their early investment and it is encourage to growing capital and as it provide an alternative to privet equity investment and particularly in the current market that where debt funding is hard to come by.
Convenience and easier
Venture capitalists tend to take large chunk of the companies they invest in and demand control over every decision made, dictating harsh terms as they for the listing in venture capitalists the companies have to invest a lot of money and demand control over every decision made. On the other hand company trading invest bx, will typically have around 15 to 20 percent of its shares held by individuals and smaller institutional investors, leaving management unequivocally in charge of their own business.
It is cheaper than other exchange
The stock exchange market have been available for everyone to invest their own money by buying and selling shares and provides good benefits to customers, and all limited companies means which have been to be listed on the invest bx their privet equity investment of up to £2 million often require little or no debt, so the current difficulties in sourcing large amounts of bank debt would not apply here the listing cost is also not very much so that it cannot prove like burden on the interesting companies.
It is best for the new investments
The Invest bx have been provides a secondary market for all investors to do trade by their shares, have to they desire. The stock exchange market has been operated by The Share Centre, which would works on a coordinate, good deal basis by the use of an online auction, there are no market makers. The privet investors habitually have limited access to good quality and expanding the local companies, sometimes they would like to invest but they find it so much time consuming and costly that they do not invest, the invests bx is the right platform from where they can invest in the market, without the wastage of the money and time.
Trading Facility
The invest bx raising equity for all smaller medium companies (SME) s, it has been incorporates a stock market for West Midlands based on companies. This has been dealing shares and provides as well as to investments advice services to customers. The invests bx provides that all facility for the trade by the use of online to buying and selling the shares of any company in London, which rate are listed in west midland invest bx.
Company showcasing
The invest bx will make available to access to the sovereign do research on the companies on an ongoing basis and their our views on how their company will expand is one of the biggest advantage of the invest bx, shareholders and other business are informed of company's progress, successes and planned activities and it will be addition by showcasing to raise their profile in the area and outside helping to continue interest in their stock.
Dual trade companies
West Midlands based companies already listed on senior market can promote liquidity by admission to Local knowledge and interest in local companies combined with the cost effeteness of dealing in smaller volumes of stock can promote share dealing, the smaller companies which are listed on the invest bx get a chance to compete with the bigger companies and this could help in economic growth.
Suitable method of trading
In the stock exchange market investment offers a suitable way of trading. Because it is convenes to all the transactions which means buying and selling are done through the internet and it is not much difficult, they are also not much rules and regulations companies have to follow to carry on trade in invest bx. it easy business to everyone.
DISADVANTAES OF LISTING COMPANY ON INVEST BX
Large number of share holders
The stock exchange market is very risk businesses because there are large numbers of shareholders, so they would create innumerable problems for any small mistake. This will certainly be the case for companies trading on invest bx, which will be required to provide regular information and answers to investors who may have a limited understanding of the operations and strategy of the company.
Secondly , a widely spread shareholders base can be important if a company want to make acquisitions or raise further capital or put itself up for sale at the time very least, so there will be time delays because while shareholders are consulted at worst, shareholders might be completely imperceptible, or uncooperative.
Limited profits only
There is another disadvantage is that limitation on the profit of the investors of the companies they can get limited profits only, if they get more profits those should be need to distribute to all share holders, because the investors have been limited only, this is not the bigger stock exchanges where you have the freedom to earn as one can.
More pressures on the companies
The companies also have to face added pressure to show strong short- term performance. Earnings are reported quarterly, and shareholders and financial markets always want to see good results. Unfortunately, long- term strategic investment decisions may tend to have a lower priority than making current numbers look good. The additional reporting requirements for public companies also add expense, as the small business will likely need to improve accounting systems.
Loss of privacy
The companies listed here have no privacy as their policies are opened to public due to the
Involvement of press. Their objective and different business strategies are disclosed to their
Competitors this can harm their business.
