98-567: ZCCM Investments Holdings is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM Ltd), of Zambia . The company, ZCCM, was formed by a gradual process of nationalization and corporate concatenation which began in January 1970. A major switch in the structure of Zambia's economy came with the Mulungushi Reforms of April 1968: the government declared its intention to acquire equity holdings (usually 51% or more) in
196-405: A bank or credit union that may have a deal set up with either a full-service or discount broker. There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor relations departments. However, the initial share of stock in
294-1611: A golden share . ZCCM-IH has 20% shareholding in KMP - First Quantum Minerals Ltd (FQM) has 80% shareholding in KMP ZCCM-IH has 20% shareholding in CEC - Zambian Energy Corporation has 52% shareholding in CEC [ZCCM-IH has 20% shareholding in LCM - China Non-Ferrous Metal Mining Ltd (CNMC) has 80% shareholding in LCM ZCCM-IH has 20% shareholding in Konnoco, African Rainbow Mining 40% - VALE 40% ZCCM-IH has 15% shareholding in NFCA - China Nonferrous Metal Co Ltd (CNMC) has 85% shareholding in NFCA ZCCM-IH has 15% shareholding in CMP - Metorex Ltd has 85% shareholding in CMP ZCCM-IH has 10,07% shareholding in Investrust (494,00,000 shares / 4,901,500,000) ZCCM-IH acquired 90% shareholding of MCM previously held by Glencore Corporation through Carlisa Investment Corporation (73.1%) and First Quantum Mining (16.9%), giving ZCCMIH 100% control of Mopani. The Government of Zambia and Glencore Corporation signed an off-take arrangement deal. An off-take arrangement
392-1009: A golden share . ZCCM-IH has 20% shareholding in KMP - First Quantum Minerals Ltd (FQM) has 80% shareholding in KMP ZCCM-IH has 20% shareholding in CEC - Zambian Energy Corporation has 52% shareholding in CEC [ZCCM-IH has 20% shareholding in LCM - China Non-Ferrous Metal Mining Ltd (CNMC) has 80% shareholding in LCM ZCCM-IH has 20% shareholding in Konnoco, African Rainbow Mining 40% - VALE 40% ZCCM-IH has 15% shareholding in NFCA - China Nonferrous Metal Co Ltd (CNMC) has 85% shareholding in NFCA ZCCM-IH has 15% shareholding in CMP - Metorex Ltd has 85% shareholding in CMP ZCCM-IH has 10,07% shareholding in Investrust (494,00,000 shares / 4,901,500,000) ZCCM-IH acquired 90% shareholding of MCM previously held by Glencore Corporation through Carlisa Investment Corporation (73.1%) and First Quantum Mining (16.9%), giving ZCCMIH 100% control of Mopani. The Government of Zambia and Glencore Corporation signed an off-take arrangement deal. An off-take arrangement
490-471: A stock certificate . A stock certificate is a legal document that specifies the number of shares owned by the shareholder , and other specifics of the shares, such as the par value, if any, or the class of the shares. In the United Kingdom , Republic of Ireland , South Africa , and Australia , stock can also refer, less commonly, to all kinds of marketable securities . Stock typically takes
588-401: A stockbroker who buys and sells shares of a wide range of companies on such exchanges. A company may list its shares on an exchange by meeting and maintaining the listing requirements of a particular stock exchange. Many large non-U.S companies choose to list on a U.S. exchange as well as an exchange in their home country in order to broaden their investor base. These companies must maintain
686-472: A block of shares at a bank in the US, typically a certain percentage of their capital. On this basis, the holding bank establishes American depositary shares and issues an American depositary receipt (ADR) for each share a trader acquires. Likewise, many large U.S. companies list their shares at foreign exchanges to raise capital abroad. Small companies that do not qualify and cannot meet the listing requirements of
784-426: A buyer. Most trades are actually done through brokers listed with a stock exchange. There are many different brokerage firms from which to choose, such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be
882-401: A company to be listed are minimal. Shares of companies in bankruptcy proceedings are usually listed by these quotation services after the stock is delisted from an exchange. There are various methods of buying and financing stocks, the most common being through a stockbroker . Brokerage firms, whether they are a full-service or discount broker, arrange the transfer of stock from a seller to
980-415: A couple of aspects. They issued shares called partes (for large cooperatives) and particulae which were small shares that acted like today's over-the-counter shares. Polybius mentions that "almost every citizen" participated in the government leases. There is also evidence that the price of stocks fluctuated. The Roman orator Cicero speaks of partes illo tempore carissimae , which means "shares that had
1078-507: A few unusual cases, some courts have been willing to imply such a duty between shareholders. For example, in California , United States , majority shareholders of closely held corporations have a duty not to destroy the value of the shares held by minority shareholders. The largest shareholders (in terms of percentages of companies owned) are often mutual funds, and, especially, passively managed exchange-traded funds . The owners of
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#17327757876081176-565: A new parastatal body, the Mining Development Corporation (MINDECO). The Finance and Development Corporation (FINDECO) allowed the Zambian government to gain control of insurance companies and building societies . However, foreign-owned banks (such as Barclays , Standard Chartered and Grindlays ) successfully resisted takeover. In 1971, INDECO, MINDECO, and FINDECO were brought together under an omnibus parastatal,
1274-425: A new parastatal body, the Mining Development Corporation (MINDECO). The Finance and Development Corporation (FINDECO) allowed the Zambian government to gain control of insurance companies and building societies . However, foreign-owned banks (such as Barclays , Standard Chartered and Grindlays ) successfully resisted takeover. In 1971, INDECO, MINDECO, and FINDECO were brought together under an omnibus parastatal,
1372-406: A non-equity interest in a non-profit organization . Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders. Although directors and officers of a company are bound by fiduciary duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other. However, in
1470-400: A number of different conditions are met. A stock derivative is any financial instrument for which the underlying asset is the price of an equity. Futures and options are the main types of derivatives on stocks. The underlying security may be a stock index or an individual firm's stock, e.g. single-stock futures . Stock futures are contracts where the buyer is long , i.e., takes on
1568-819: A number of key foreign-owned firms, to be controlled by a parastatal conglomerate named the Industrial Development Corporation (INDECO). By January 1970, Zambia had acquired majority holding in the Zambian operations of the two major foreign mining corporations, the Anglo American Corporation and the Rhodesia Selection Trust (RST); the two became the Nchanga Consolidated Copper Mines (NCCM) and Roan Consolidated Mines (RCM), respectively. The Zambian government then created
1666-483: A number of key foreign-owned firms, to be controlled by a parastatal conglomerate named the Industrial Development Corporation (INDECO). By January 1970, Zambia had acquired majority holding in the Zambian operations of the two major foreign mining corporations, the Anglo American Corporation and the Rhodesia Selection Trust (RST); the two became the Nchanga Consolidated Copper Mines (NCCM) and Roan Consolidated Mines (RCM), respectively. The Zambian government then created
1764-423: A number of reasons may induce an investor to sell at a loss, e.g., to avoid further loss. As with buying a stock, there is a transaction fee for the broker's efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on which type of brokerage, full service or discount, handles the transaction. After the transaction has been made, the seller is then entitled to all of
1862-430: A percentage of the stock has the ownership of the corporation proportional to their share. The shares form a stock; the stock of a corporation is partitioned into shares , the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value , which
1960-421: A private company may want additional capital to invest in new projects within the company. They may also simply wish to reduce their holding, freeing up capital for their own private use. They can achieve these goals by selling shares in the company to the general public, through a sale on a stock exchange . This process is called an initial public offering , or IPO. By selling shares they can sell part or all of
2058-464: A significant minority interest in principal mining operations; · Transfer or extinguish ZCCM's liabilities, including its third party debt; · Diversify ownership of Copperbelt assets; · Promote Zambian participation in the ownership and management of the mining assets; and · Conduct the privatisation as quickly and transparently as consistent with good order, respecting other objectives and observing ZCCM Ltd's existing contractual obligations. As part of
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#17327757876082156-462: A significant minority interest in principal mining operations; · Transfer or extinguish ZCCM's liabilities, including its third party debt; · Diversify ownership of Copperbelt assets; · Promote Zambian participation in the ownership and management of the mining assets; and · Conduct the privatisation as quickly and transparently as consistent with good order, respecting other objectives and observing ZCCM Ltd's existing contractual obligations. As part of
2254-479: A song, critics alleged. The mines were privatised after the copper prices had dropped from $ 2,300/tonne in 1997 to about $ 1,500/tonne in 1998 – and remained at this level until 2003. As the government was subsidising the mines by approximately $ 1 million a day, the privatisation was encouraged by a bit of arm-twisting: "We were told by advisers, who included the International Monetary Fund and
2352-399: A song, critics alleged. The mines were privatised after the copper prices had dropped from $ 2,300/tonne in 1997 to about $ 1,500/tonne in 1998 – and remained at this level until 2003. As the government was subsidising the mines by approximately $ 1 million a day, the privatisation was encouraged by a bit of arm-twisting: "We were told by advisers, who included the International Monetary Fund and
2450-787: A very high price at that time". This implies a fluctuation of price and stock market behavior in Rome. Around 1250 in France at Toulouse , 100 shares of the Société des Moulins du Bazacle , or Bazacle Milling Company were traded at a value that depended on the profitability of the mills the society owned. In 1288, the Bishop of Västerås acquired a 12.5% interest in Great Copper Mountain (Stora Kopparberget in Swedish) which contained
2548-442: Is a nominal accounting value used to represent the equity on the balance sheet of the corporation. In other jurisdictions, however, shares of stock may be issued without associated par value. Shares represent a fraction of ownership in a business. A business may declare different types (or classes) of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of
2646-416: Is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM Ltd), of Zambia . The company, ZCCM, was formed by a gradual process of nationalization and corporate concatenation which began in January 1970. A major switch in the structure of Zambia's economy came with the Mulungushi Reforms of April 1968: the government declared its intention to acquire equity holdings (usually 51% or more) in
2744-399: Is an individual or company (including a corporation ) that legally owns one or more shares of stock in a joint stock company . Both private and public traded companies have shareholders. Shareholders are granted special privileges depending on the class of stock, including the right to vote on matters such as elections to the board of directors , the right to share in distributions of
2842-645: Is because ZCCM-IH and Glencore deal is based on a no-cash transfer basis. ZCCM-IH has 10% shareholding in Chambishi - Eurasian Natural Resources Capital (ENRC) has 90% shareholding in Chambishi Prior to privatization in 2000, ZCCM Ltd was a consolidated copper-mining conglomerate , majority-owned by the Government of the Republic of Zambia (GRZ). Put in other words, until 31 March 2000, ZCCM Ltd
2940-408: Is because ZCCM-IH and Glencore deal is based on a no-cash transfer basis. ZCCM-IH has 10% shareholding in Chambishi - Eurasian Natural Resources Capital (ENRC) has 90% shareholding in Chambishi Prior to privatization in 2000, ZCCM Ltd was a consolidated copper-mining conglomerate , majority-owned by the Government of the Republic of Zambia (GRZ). Put in other words, until 31 March 2000, ZCCM Ltd
3038-407: Is currently in the buyer's ownership, or by buying stock on margin . Buying stock on margin means buying stock with money borrowed against the value of stocks in the same account. These stocks, or collateral , guarantee that the buyer can repay the loan ; otherwise, the stockbroker has the right to sell the stock (collateral) to repay the borrowed money. He can sell if the share price drops below
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3136-454: Is important in areas such as insurance, which must be in the name of the company and not the main shareholder. In most countries, boards of directors and company managers have a fiduciary responsibility to run the company in the interests of its stockholders. Nonetheless, as Martin Whitman writes: Even though the board of directors runs the company, the shareholder has some impact on
3234-476: Is impractical to have all of them making the daily decisions required to run a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company. In a typical case, each share constitutes one vote. Corporations may, however, issue different classes of shares, which may have different voting rights. Owning the majority of the shares allows other shareholders to be out-voted – effective control rests with
3332-504: Is preferred stock that includes the ability of the holder to convert the preferred shares into a fixed number of common shares, usually any time after a predetermined date. Shares of such stock are called "convertible preferred shares" (or "convertible preference shares" in the UK). New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer. Some shares of common stock may be issued without
3430-424: Is significantly correlated to the market value of a stock. Stock price may be influenced by analysts' business forecast for the company and outlooks for the company's general market segment. Stocks can also fluctuate greatly due to pump and dump scams (also see List of S&P 600 companies ) . At any given moment, an equity's price is strictly a result of supply and demand. The supply, commonly referred to as
3528-435: Is simply an arrangement between the producer and a buyer to purchase or sell all or portions of the producer's forthcoming goods/ commodities to the market. This sort of agreement is commonly done with the mines to secure a market for their future production purposes. In this case, Glencore Corporation has agreed to sell 90% of its shares to ZCCM-IH, which will fully own the mines after the transaction has been fully settled. This
3626-435: Is simply an arrangement between the producer and a buyer to purchase or sell all or portions of the producer's forthcoming goods/ commodities to the market. This sort of agreement is commonly done with the mines to secure a market for their future production purposes. In this case, Glencore Corporation has agreed to sell 90% of its shares to ZCCM-IH, which will fully own the mines after the transaction has been fully settled. This
3724-438: The float , is the number of shares offered for sale at any one moment. The demand is the number of shares investors wish to buy at exactly that same time. The price of the stock moves in order to achieve and maintain equilibrium . The product of this instantaneous price and the float at any one time is the market capitalization of the entity offering the equity at that point in time. When prospective buyers outnumber sellers,
3822-602: The Falun Mine . The Swedish mining and forestry products company Stora has documented a stock transfer, in 1288 in exchange for an estate. The earliest recognized joint-stock company in modern times was the English (later British) East India Company . It was granted an English Royal Charter by Elizabeth I on 31 December 1600, with the intention of favouring trade privileges in India . The Royal Charter effectively gave
3920-435: The margin requirement , at least 50% of the value of the stocks in the account. Buying on margin works the same way as borrowing money to buy a car or a house, using a car or house as collateral. Moreover, borrowing is not free; the broker usually charges 8–10% interest. Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order ( short selling ); although
4018-470: The shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt ), or voting power , often dividing these up in proportion to
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4116-687: The African Development Bank Group. For five years he served as non-executive director on the initial Board of the Emerging African Infrastructure Fund (EAIF), a donor funded financial instrument to encourage public and private sector partnership in infrastructure development in Sub-Sahara Africa. The objectives are to diversify the portfolio (coal, gemstones, oil,...) and to maximise returns from assets and shareholdings. Therefore,
4214-439: The African Development Bank Group. For five years he served as non-executive director on the initial Board of the Emerging African Infrastructure Fund (EAIF), a donor funded financial instrument to encourage public and private sector partnership in infrastructure development in Sub-Sahara Africa. The objectives are to diversify the portfolio (coal, gemstones, oil,...) and to maximise returns from assets and shareholdings. Therefore,
4312-668: The Principality of Monaco. Africa: South Africa, Zambia, Zimbabwe, Botswana, Tunisia, Egypt, Nigeria, Algeria, Republique Du Congo and Morocco. Australasia/other: Australia, New Zealand, India, Oman, Pakistan, Sri Lanka, Jamaica, Bahamas and USA. ZCCM Investment Holdings Plc (LuSE:ZCCM) financial summary 5 years trend on income, balance sheet and cash flow information All values in Zambian Kwacha. All values in Zambian Kwacha. Stock Stocks (also capital stock , or sometimes interchangeably, shares ) consist of all
4410-509: The Principality of Monaco. Africa: South Africa, Zambia, Zimbabwe, Botswana, Tunisia, Egypt, Nigeria, Algeria, Republique Du Congo and Morocco. Australasia/other: Australia, New Zealand, India, Oman, Pakistan, Sri Lanka, Jamaica, Bahamas and USA. ZCCM Investment Holdings Plc (LuSE:ZCCM) financial summary 5 years trend on income, balance sheet and cash flow information All values in Zambian Kwacha. All values in Zambian Kwacha. Zambia Consolidated Copper Mines ZCCM Investments Holdings
4508-712: The World Bank that (...) for the next 20 years, Zambian copper would not make a profit. [But, if we privatised] we would be able to access debt relief, and this was a huge carrot in front of us (...). We had no option," said then Minister of Finance Edith Nawakwi . The objectives, which the Government was seeking to achieve through the privatisation of ZCCM, were to: · Transfer control of and operating responsibilities for ZCCM's operations to private sector mining companies as quickly as practicable; · Mobilise substantial amounts of committed new capital for ZCCM's operations; · Ensure that ZCCM realised value for its assets and retained
4606-651: The World Bank that (...) for the next 20 years, Zambian copper would not make a profit. [But, if we privatised] we would be able to access debt relief, and this was a huge carrot in front of us (...). We had no option," said then Minister of Finance Edith Nawakwi . The objectives, which the Government was seeking to achieve through the privatisation of ZCCM, were to: · Transfer control of and operating responsibilities for ZCCM's operations to private sector mining companies as quickly as practicable; · Mobilise substantial amounts of committed new capital for ZCCM's operations; · Ensure that ZCCM realised value for its assets and retained
4704-575: The Zambia Industrial and Mining Corporation (ZIMCO), to create one of the largest companies in sub-Saharan Africa, with the country's president, Kenneth Kaunda as chairman of the board. The management contracts under which day-to-day operations of the mines had been carried out by Anglo American and RST were ended in 1973. In 1982 NCCM and RCM were merged into the giant Zambia Consolidated Copper Mines Ltd (ZCCM). After nationalisation, copper prices started declining, oil prices increased and
4802-505: The Zambia Industrial and Mining Corporation (ZIMCO), to create one of the largest companies in sub-Saharan Africa, with the country's president, Kenneth Kaunda as chairman of the board. The management contracts under which day-to-day operations of the mines had been carried out by Anglo American and RST were ended in 1973. In 1982 NCCM and RCM were merged into the giant Zambia Consolidated Copper Mines Ltd (ZCCM). After nationalisation, copper prices started declining, oil prices increased and
4900-448: The additional responsibility of managing the ex ZCCM employees trust fund and also the finalization sale of ZCCM properties. In November 2011, the role and importance of ZCCM-IH have been highlighted, led by the Hon. Zambian Minister of Mines Wylbur Simuusa, representing the major shareholder. "Through its state mining investment company, Zambia Consolidated Copper Mines Investment Holdings,
4998-399: The additional responsibility of managing the ex ZCCM employees trust fund and also the finalization sale of ZCCM properties. In November 2011, the role and importance of ZCCM-IH have been highlighted, led by the Hon. Zambian Minister of Mines Wylbur Simuusa, representing the major shareholder. "Through its state mining investment company, Zambia Consolidated Copper Mines Investment Holdings,
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#17327757876085096-467: The board of the directors themselves, and a considerable amount of stock is held or voted by insiders. Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans and other debts first, so that shareholders cannot receive any money unless and until creditors have been paid (often
5194-726: The company drops the "A" creating ticker OODH for its "Common" shares only designation. This extra letter does not mean that any exclusive rights exist for the shareholders but it does let investors know that the shares are considered for such, however, these rights or privileges may change based on the decisions made by the underlying company. " Rule 144 Stock" is an American term given to shares of stock subject to SEC Rule 144: Selling Restricted and Control Securities. Under Rule 144, restricted and controlled securities are acquired in unregistered form. Investors either purchase or take ownership of these securities through private sales (or other means such as via ESOPs or in exchange for seed money) from
5292-432: The company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends . The owner may also inherit debt and even litigation . In the common case of a publicly traded corporation, where there may be thousands of shareholders, it
5390-444: The company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering in which the stock is purchased directly from the company, usually without the aid of brokers. When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that
5488-418: The company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company. However, shareholder's rights to a company's assets are subordinate to the rights of the company's creditors. Shareholders are one type of stakeholders , who may include anyone who has a direct or indirect equity interest in the business entity or someone with
5586-470: The company's policy, as the shareholders elect the board of directors. Each shareholder typically has a percentage of votes equal to the percentage of shares he or she owns. So as long as the shareholders agree that the management (agent) are performing poorly they can select a new board of directors which can then hire a new management team. In practice, however, genuinely contested board elections are rare. Board candidates are usually nominated by insiders or by
5684-552: The effects of using the mining industry as a cash cow started showing. Copper production in Zambia plummeted – from its peak of 750,000 tonnes (830,000 short tons) in 1973 to 230,000 tonnes (250,000 short tons) in 2000. Zambia Consolidated Copper Mines (ZCCM), which operated ten mines, three smelters, two refineries and a tailings leach plant. ZCCM was owned by Zambia Industrial and Mining Corporation (60.3%), an Anglo-American subsidiary ZCI Holdings (27.2%), RST International (7.0%) and
5782-498: The effects of using the mining industry as a cash cow started showing. Copper production in Zambia plummeted – from its peak of 750,000 tonnes (830,000 short tons) in 1973 to 230,000 tonnes (250,000 short tons) in 2000. Zambia Consolidated Copper Mines (ZCCM), which operated ten mines, three smelters, two refineries and a tailings leach plant. ZCCM was owned by Zambia Industrial and Mining Corporation (60.3%), an Anglo-American subsidiary ZCI Holdings (27.2%), RST International (7.0%) and
5880-439: The form of shares of either common stock or preferred stock . As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock
5978-737: The future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative . The most popular method of valuing stock options is the Black–Scholes model . Apart from call options granted to employees , most stock options are transferable. During the Roman Republic , the state contracted (leased) out many of its services to private companies. These government contractors were called publicani , or societas publicanorum as individual companies. These companies were similar to modern corporations, or joint-stock companies more specifically, in
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#17327757876086076-400: The government is finalizing plans to start negotiations with mining companies aimed at increasing its stakes in projects to as much as 35%" he told the press. "There is need for the country to have increased ownership in the mines and ZCCM-IH is an engine which can facilitate the process." "ZCCM-IH is an important unit which if properly managed, can help the country realise huge benefits from
6174-400: The government is finalizing plans to start negotiations with mining companies aimed at increasing its stakes in projects to as much as 35%" he told the press. "There is need for the country to have increased ownership in the mines and ZCCM-IH is an engine which can facilitate the process." "ZCCM-IH is an important unit which if properly managed, can help the country realise huge benefits from
6272-465: The issuing company (as in the case with Restricted Securities) or from an affiliate of the issuer (as in the case with Control Securities). Investors wishing to sell these securities are subject to different rules than those selling traditional common or preferred stock. These individuals will only be allowed to liquidate their securities after meeting the specific conditions set forth by SEC Rule 144. Rule 144 allows public re-sale of restricted securities if
6370-443: The larger economy. As new shares are issued by a company, the ownership and rights of existing shareholders are diluted in return for cash to sustain or grow the business. Companies can also buy back stock , which often lets investors recoup the initial investment plus capital gains from subsequent rises in stock price. Stock options issued by many companies as part of employee compensation do not represent ownership, but represent
6468-550: The major exchanges may be traded over-the-counter (OTC) by an off-exchange mechanism in which trading occurs directly between parties. The major OTC markets in the United States are the electronic quotation systems OTC Bulletin Board (OTCBB) and OTC Markets Group (formerly known as Pink OTC Markets Inc.) where individual retail investors are also represented by a brokerage firm and the quotation service's requirements for
6566-450: The majority of its investments held in the copper-mining sector of Zambia. The company's shareholders are the Government of the Republic of Zambia (GRZ), with 77.7% shareholding, and institutions and individuals, with 22.3% of shares. Minority shareholders are spread throughout the world, in various locations. Europe: England, Belgium, France, Netherlands, Scotland, Switzerland, Greece, Channel Islands, Irish Republic, Portugal, Norway and
6664-450: The majority of its investments held in the copper-mining sector of Zambia. The company's shareholders are the Government of the Republic of Zambia (GRZ), with 77.7% shareholding, and institutions and individuals, with 22.3% of shares. Minority shareholders are spread throughout the world, in various locations. Europe: England, Belgium, France, Netherlands, Scotland, Switzerland, Greece, Channel Islands, Irish Republic, Portugal, Norway and
6762-442: The majority shareholder (or shareholders acting in concert). In this way the original owners of the company often still have control of the company. Although ownership of 50% of shares does result in 50% ownership of a company, it does not give the shareholder the right to use a company's building, equipment, materials, or other property. This is because the company is considered a legal person, thus it owns all its assets itself. This
6860-1130: The management recently engaged negotiations with mining companies to get unpaid dividends as profits are huge. The privatisation of ZCCM saw drastic cuts to social spending on health, education, urban infrastructure on the Zambian Copperbelt . ZCCM owns significant amount of the stock of the following subsidiary Zambian copper mining companies: ZCCM-IH has 100% shareholding in NLC ZCCM-IH has 50% shareholding in KML – Gemfields Plc has 50% shareholding in KML ZCCM-IH has 35% shareholding in MCL - Nava Bharat Ltd has 65% shareholding in MCL ZCCM-IH has 20.6% shareholding in KCM - Vedanta Resources Plc has 79.4% shareholding in KCM The grz has
6958-679: The management recently engaged negotiations with mining companies to get unpaid dividends as profits are huge. The privatisation of ZCCM saw drastic cuts to social spending on health, education, urban infrastructure on the Zambian Copperbelt . ZCCM owns significant amount of the stock of the following subsidiary Zambian copper mining companies: ZCCM-IH has 100% shareholding in NLC ZCCM-IH has 50% shareholding in KML – Gemfields Plc has 50% shareholding in KML ZCCM-IH has 35% shareholding in MCL - Nava Bharat Ltd has 65% shareholding in MCL ZCCM-IH has 20.6% shareholding in KCM - Vedanta Resources Plc has 79.4% shareholding in KCM The grz has
7056-512: The market, the price of a stock is sensitive to demand. However, there are many factors that influence the demand for a particular stock. The fields of fundamental analysis and technical analysis attempt to understand market conditions that lead to price changes, or even predict future price levels. A recent study shows that customer satisfaction, as measured by the American Customer Satisfaction Index (ACSI),
7154-413: The mining resources." To that purpose, as Zambian presidential elections have emerged the victory of Patriotic Front leader Michael Sata, Mr. Wila D. Mung'omba was appointed as Executive Chairman of ZCCM-IH with effect from 1 December 2011. Mr. Mung'omba who is not new to the affairs of the company, has in the past served as Group A Director of ZCCM Limited in 1996–98. Between 1995 and 1998, Mr. Mung'omba
7252-413: The mining resources." To that purpose, as Zambian presidential elections have emerged the victory of Patriotic Front leader Michael Sata, Mr. Wila D. Mung'omba was appointed as Executive Chairman of ZCCM-IH with effect from 1 December 2011. Mr. Mung'omba who is not new to the affairs of the company, has in the past served as Group A Director of ZCCM Limited in 1996–98. Between 1995 and 1998, Mr. Mung'omba
7350-454: The money. An important part of selling is keeping track of the earnings. Importantly, on selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis. Short selling consists of an investor immediately selling borrowed shares and then buying them back when their price has gone down (called "covering"). Essentially, such an investor bets that
7448-685: The newly created Honourable East India Company (HEIC) a 15-year monopoly on all trade in the East Indies . Soon afterwards, in 1602, the Dutch East India Company issued the first shares that were made tradeable on the Amsterdam Stock Exchange . Between 1602 and 1796 it traded 2.5 million tons of cargo with Asia on 4,785 ships and sent a million Europeans to work in Asia. A shareholder (or stockholder )
7546-511: The number of like shares each stockholder owns. Not all stock is necessarily equal, as certain classes of stock may be issued, for example, without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of shareholders. Stock can be bought and sold privately or on stock exchanges . Transactions of the former are closely overseen by governments and regulatory bodies to prevent fraud, protect investors, and benefit
7644-399: The obligation to buy on the contract maturity date, and the seller is short , i.e., takes on the obligation to sell. Stock index futures are generally delivered by cash settlement. A stock option is a class of option. Specifically, a call option is the right ( not obligation) to buy stock in the future at a fixed price and a put option is the right ( not obligation) to sell stock in
7742-437: The payment of dividends over common stock and also have been given preference at the time of liquidation over common stock. They have other features of accumulation in dividend. In addition, preferred stock usually comes with a letter designation at the end of the security; for example, Berkshire-Hathaway Class "B" shares sell under stock ticker BRK.B, whereas Class "A" shares of ORION DHC, Inc will sell under ticker OODHA until
7840-444: The price of the shares will drop so that they can be bought back at the lower price and thus returned to the lender at a profit. The risks of short selling stock are usually higher than those of buying stock. This is because the loss can theoretically be unlimited since the stock's value can theoretically go up indefinitely. The price of a stock fluctuates fundamentally due to the theory of supply and demand . Like all commodities in
7938-607: The privatisation of ZCCM envisaged GRZ disposing of some or all of its shareholding, with part of this being earmarked for Zambian institutional and private investors as a way of promoting Zambian participation in the mining sector. GRZ obtained the support of the World Bank and the Nordic Development Fund for the Copperbelt Environment Project (CEP), to address environmental liabilities and obligations remaining with GRZ/ZCCM-IH following
8036-446: The privatisation of ZCCM envisaged GRZ disposing of some or all of its shareholding, with part of this being earmarked for Zambian institutional and private investors as a way of promoting Zambian participation in the mining sector. GRZ obtained the support of the World Bank and the Nordic Development Fund for the Copperbelt Environment Project (CEP), to address environmental liabilities and obligations remaining with GRZ/ZCCM-IH following
8134-706: The privatization of mining assets. The Environmental Management Facility (EMF) which is composed of multiple stakeholders, working as the EMF Steering Committee, was established by the Minister of Finance and National Planning as provided for by the protocols, for the purpose of prioritizing and approving subprojects of the CEP for funding. The project which became effective on 31 July 2003 ends in August 2008. Apart from environmental responsibilities ZCCM-IH has
8232-473: The privatization of mining assets. The Environmental Management Facility (EMF) which is composed of multiple stakeholders, working as the EMF Steering Committee, was established by the Minister of Finance and National Planning as provided for by the protocols, for the purpose of prioritizing and approving subprojects of the CEP for funding. The project which became effective on 31 July 2003 ends in August 2008. Apart from environmental responsibilities ZCCM-IH has
8330-562: The privatization process, the company's mining assets were unbundled and sold off as separate new entities or business packages to the private sector. The reason for unbundling the ZCCM Ltd into business packages was to promote diversity of ownership and minimise political and economic risks. A two-stage privatisation process was adopted. Under Stage one, majority interests in the packages relating to certain of ZCCM Ltd's mining and power distribution operations were offered to trade buyers, which
8428-506: The privatization process, the company's mining assets were unbundled and sold off as separate new entities or business packages to the private sector. The reason for unbundling the ZCCM Ltd into business packages was to promote diversity of ownership and minimise political and economic risks. A two-stage privatisation process was adopted. Under Stage one, majority interests in the packages relating to certain of ZCCM Ltd's mining and power distribution operations were offered to trade buyers, which
8526-441: The public (5.5%). ZCCM was sold in 1998 for just US$ 627 million, split into 7 units, including Konkola Copper Mine ($ 25 million), Kansanshi Mine ($ 28 million), Luanshya Mine ($ 35 million), Chibuluma Mine ($ 17.5 million), Chambishi Mine ($ 20 million) and others. The low price was criticised for being a result of bribery and corruption – with Anglo-American, which sat on the board of ZCCM, buying Konkola Copper Mines, ZCCM's flagship, for
8624-441: The public (5.5%). ZCCM was sold in 1998 for just US$ 627 million, split into 7 units, including Konkola Copper Mine ($ 25 million), Kansanshi Mine ($ 28 million), Luanshya Mine ($ 35 million), Chibuluma Mine ($ 17.5 million), Chambishi Mine ($ 20 million) and others. The low price was criticised for being a result of bribery and corruption – with Anglo-American, which sat on the board of ZCCM, buying Konkola Copper Mines, ZCCM's flagship, for
8722-401: The right to buy ownership at a future time at a specified price. This would represent a windfall to the employees if the option were exercised when the market price is higher than the promised price, since if they immediately sold the stock they would keep the difference (minus taxes). Stock bought and sold in private markets fall within the private equity realm of finance. A person who owns
8820-420: The shareholders end up with nothing). Financing a company through the sale of stock in a company is known as equity financing. Alternatively, debt financing (for example issuing bonds ) can be done to avoid giving up shares of ownership of the company. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). In general,
8918-524: The shares of a company may be transferred from shareholders to other parties by sale or other mechanisms, unless prohibited. Most jurisdictions have established laws and regulations governing such transfers, particularly if the issuer is a publicly traded entity. The desire of stockholders to trade their shares has led to the establishment of stock exchanges , organizations which provide marketplaces for trading shares and other derivatives and financial products. Today, stock traders are usually represented by
9016-417: The typical voting rights, for instance, or some shares may have special rights unique to them and issued only to certain parties. Often, new issues that have not been registered with a securities governing body may be restricted from resale for certain periods of time. Preferred stock may be hybrid by having the qualities of bonds of fixed returns and common stock voting rights. They also have preference in
9114-627: Was World Bank's appointed team leader in the initial preparation of the ZCCM Limited privatization Report and Plan by the UK based Investment Bank NM, Rothschild & Sons and international law firm Clifford Chance. Later Mr. Mung'omba was involved in the creation of the present ZCCM-IH. Mr. Mung'omba is a distinguished lawyer of many years, a former executive director of the International Monetary Fund, and former president of
9212-435: Was World Bank's appointed team leader in the initial preparation of the ZCCM Limited privatization Report and Plan by the UK based Investment Bank NM, Rothschild & Sons and international law firm Clifford Chance. Later Mr. Mung'omba was involved in the creation of the present ZCCM-IH. Mr. Mung'omba is a distinguished lawyer of many years, a former executive director of the International Monetary Fund, and former president of
9310-641: Was a 60.3% state-owned, mine-operating company in which Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc , held 27.3% of shares, with the balance of 12.4% of shares held by private investors . Since privatisation of ZCCM, ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holdings company which is listed on the Lusaka Stock Exchange , the London Stock Exchange and on Euronext in Paris , and has
9408-446: Was a 60.3% state-owned, mine-operating company in which Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc , held 27.3% of shares, with the balance of 12.4% of shares held by private investors . Since privatisation of ZCCM, ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holdings company which is listed on the Lusaka Stock Exchange , the London Stock Exchange and on Euronext in Paris , and has
9506-793: Was to leave the transformed ZCCM Ltd as an Investments Holdings Company, with minority interest in each of these packages. Through ZCCM Investments Holdings Plc., Government has retained minority interests of not more than 21% within each of the business packages. The privatisation of ZCCM commenced in 1996, after GRZ and the Boards of ZCCM and the Zambia Privatisation Agency (ZPA) approved the ZCCM Limited Privatisation Report and Plan presented by UK based financial and legal advisors, NM Rothschild & Sons and Clifford Chance, respectively. Stage two of
9604-570: Was to leave the transformed ZCCM Ltd as an Investments Holdings Company, with minority interest in each of these packages. Through ZCCM Investments Holdings Plc., Government has retained minority interests of not more than 21% within each of the business packages. The privatisation of ZCCM commenced in 1996, after GRZ and the Boards of ZCCM and the Zambia Privatisation Agency (ZPA) approved the ZCCM Limited Privatisation Report and Plan presented by UK based financial and legal advisors, NM Rothschild & Sons and Clifford Chance, respectively. Stage two of
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