debts at Stock Research

The American court on affairs of bankruptcies has approved the plan of refinancing of a duty of airline Northwest Airlines. Judge Alan Gopper has approved intention of the company to refinance an existing duty at a rate of 1.13 billion dollars and to receive an additional loan in 250 million dollars owing to what the airline becomes more liquid. Refinancing will help Northwest Airlines to save nearby 34 million dollars a year from payments on percent and 900 million dollars more for repayment of debts to 2010. The fifth on size airline of USA Northwest Airlines has declared the bankruptcy on September, 14th 2005. Its pure losses on results of 2nd quarter of 2006 have increased for 22% - up to 285 million dollars in comparison with losses at the rate of 234 million dollars fixed for the similar period on year earlier.

Yesterday when I read the news-block I thought why I couldn’t discuss the current news in my blog. So I’ve tried to find the most interesting news for investors.
Wienerberger Brick
The European Reconstruction and Development Bank have allocated Austrian Wienerberger 13.3 million euros for building and construction of brick-making plant in the Russian Federation.
 About it is spoken in the message of bank. The European Reconstruction and Development Bank has purchased 18.1 % of stocks of limited liability company “Wienerberger Brick” (Russia) for 2.5 million euros and has granted a loan in 10,8 million euros on payment of debts. The rest of means in construction (which total cost is estimated in 38 million euros) will put Wienerberger AG.
The factory will make nearby 120 million facing bricks per year or 220 million hollow bricks. The given project - a part of the joint program of the European Reconstruction and Development Bank and Wienerberger under investments into manufacture of building materials into the countries where the bank works.
The Austrian group company Wienerberger was based in the Vein in 1819. And now it is the world leader on manufacture of a hollow and facing ceramic bricks. The group company has more than 230 factories in 24 countries of the world.

Sadia
Company Sadia S.A., one of leading manufacturers of meat products and semi-prepared foods in Brazil, has proposed purchase of 50 % of stocks of Perdigao S.A for 1,7 billion dollars. Such data are resulted in the press release of the company published today. Cost of the transaction is estimated in 3.7 billion real (1.7 billion dollars). According to conditions of the offer, Sadia it is ready to pay 27.88 real (12.58 dollars) for each current stock Perdigao. Offered to Sadia price exceeds on 35 % cost of stock Perdigao on results of closing of the share trades in the San Paulo Stock Exchange. Term of the offer expires on October, 24th 2006. As it is marked in press release of Sadia, as a result of merge in the international market of meat products and semi-prepared foods there will be a new leader. Net profit Sadia on results of 2005 has been 656.12 million Brazilian real (307.88 million dollars).

Wimm–Bill–Dann
Shareholders of public corporation “Wimm–Bill–Dann Food stuffs” (WBD) at extraordinary meeting will consider the problem on expulsion of Jamshid Jadegardzham from structure of board. As they say in message WBD, it is offered to shareholders to consider the given question under the recommendation of chairman of board of the company of Toni Mahera. Only those shareholders have the right to take part in assembly, who was registered artificially of July, 2006. The Date of ending of reception of bulletins for voting is September, 1st 2006. Also it is offered to shareholders to approve creation of branches “Wimm–Bill–Dann” in Samara, Tuimazy, Novosibirsk, Rubtsovsk, Krasnoyarsk, Irkutsk.
Ownership capital of WBD is 880 millions of rubles. In circulation there is 44 million ordinary stocks (face value 20 rubles). The principle shareholders of the company as of end of 1st quarter of 2006 are Gabriel Jushvaev - 17,13 %, Sergey Plastinin - 9,30 %, David Jakobashvili - 8,33 %, Michael Dubinin - 5,71 %, in nominal holding of shares at Deutsche Bank Trust Company Americas is 39,99 % of stocks of the company.
Public corporation “Wimm–Bill–Dann Food stuffs” was created in 1992. And now it is engaged in manufacture of juices and dairy products in Russia. Into the company enter 30 industrial enterprises which are being 21 regions of Russian Federation and the CIS. “Wimm–Bill–Dann” owns the portfolio of trade marks covering from above 1 thousand of 100 types of dairy products (”Domic v derevne”, “Milaya Mila”, Neo, Bio-max, etc.) and more than 150 types of juices, nectars and soft drinks under marks “J7″, “100 % Gold”, etc. Net profit of public corporation “Wimm–Bill–Dann” on US GAAP in 2005 has increased for 31.7 % - up to 30.3 million dollars.

GoAir
Indian airline GoAir and planemaker Airbus have signed the agreement on purchase of 10 planes A320, press-service Airbus informs. Moreover the contract gives GoAir an opportunity of purchase in the future ten similar planes. The financial component of the transaction and terms of deliveries of planes are not informed.

Today I’d like to finish the story about Saint-Petersburg Stock exchange…
Kinds of the securities presented at the Saint-Petersburg Stock exchange.
The Share market has been presented in 1830 by:
- the state and city bonded loans which shared on short-term (till 1 year), long-term and termless (the original rent)
- continuously profitable, basically denominations in 100 thousand rubles.
- mortgage sheets and bonds of ground banks and private establishments of the long-term credit;
- bonds and stocks of the private companies (stocks were issued only by the commercial enterprises, and bonds as the state and bodies of city self-management). Bonds were issued basically by denominations from 100 up to 5000 rubles, termless loans - in 100 thousand rubles. Bonds and other securities with the state guarantee could not be a subject of Exchange frauds, unlike stocks of the private companies and other securities. Last third of XIX century the most popular were stocks of private railways. The share market of 1995 differs a little:
- the state securities;
- municipal bonds and loans;
- the securities emitted by commercial bank;
- stocks and bonds of the privatized enterprises;
- securities of the private emitters created outside of process of privatization.
The following - current liabilities. They are issued by the Ministry of Finance of the Russian Federation in the paperless form. The purpose is repayment of debts to the enterprises - suppliers to the state orders and mutual payment between the enterprises. Current liabilities become the securities after the term specified in the global certificate of release. Face value of 1 current liability is 1 million rubles, the fixed profitableness at repayment - 40 %.
During the same period of time have appeared Bonds of the State Savings Loan. They are issued in the cash form, face value from 100 thousand up to 500 thousand rubles. Four times a year the coupon income established depending on profitableness of state credit obligations (the State Short-term Obligations) is paid. Sale is made on auctions which are spent or in the form of voice (calculations between participants), or electronic (calculations directly with depository of the Stock exchanges) the trades. A securities market of 1830
- The state and city bonded loans,
- mortgage sheets and bonds of ground banks and private establishments of the long-term credit,
- bonds and stocks of the private companies.
Stocks of private railways are most popular; a securities market in 1992:
- the state securities,
- municipal bonds and loans,
- the securities emitted by commercial bank,
- stocks and bonds of the privatized enterprises, - securities of the private emitters created outside of process of privatization. The state securities are most popular.
Legal aspects.
Initially according to “the companies and stocks” of 1836: all Operations on the stock exchange have been forbidden by Regulations about, but already there was a law on obligatory use of registered stocks. In 1893 have been entered restrictions on carrying out of operations with securities without the share broker. Books of the share broker submitted to audit of the Ministry of Finance, and its chapter could dismiss brokers for abusing, not asking on that of the consent of Exchange committee. Without the permission of financial department it was forbidden to enter securities into the quotation.
On June, 27th, 1900 at the Petersburg Stock exchange the share department, as “a department which was laid down in special conditions of activity” has been created. The department submitted to the Ministry of Finance on especial office by a credit part which began to interfere with activity of the share market.
In 1907 Rules for transactions on purchase and sale of a foreign currency, funds and stocks at the Petersburg Stock exchange have been founded. The bulletin of a share department of the Stock exchange became the official document; the rates specified in it - obligatory for all Russian empire. Brokers were sworn, represented the mortgage and for execution of the transactions concluded at their participation, answered within the limits of data to them of decrees. For the infringements noticed by officials of the Ministry of Finance, could exclude from full members and regular customers.
Nowadays members of the Stock exchange representatives of broker firms, banks, associations, and the dealers, brought a share can be. Physical persons for membership in he Stock exchange should have the certificate of the state bodies on the right of carrying out of transactions with securities. All members of the Stock exchange should correspond to qualifying requirements. By position 1997 the number of members should be not less than 20. The input on a stock exchange is limited. Members of controls, officials, employees of the Stock exchange have the right of a free admission.
 Thank you for your attention and I hope this information will be useful…:)

The capital of a business consists of the funds used to start and run the business. The funds can be either the owner’s (equity capital) or creditor’s (debt capital). Equity capital consists of those funds provided to the business by the owner’s. These funds come from the personal savings of the owner. Debt capital consists of borrowed funds that the business owner owes to the lender. With debt capital the entrepreneur doesn’t have to share ownership, but has a legal obligation to repay the borrowed money (principal) plus interest at a future date even if the business does not make profit.
Equity financing (obtaining owner funds) can be exemplified by the sale of corporate stock. In this type of transaction, the corporation sells units of ownership known as shares of stock. Each share entitles purchaser to a certain amount of ownership. For example, if someone buys 100 shares of stock from Ford Motor Company, that person has purchased 100 shares worth of Ford resources, materials, plants, production and profits. The person purchases shares of stock is known as stockholder or shareholder.
All corporations, regardless of their size, receive their starting capital from issuing and selling shares of stock. The initial sales involve some risk on the part of the buyers because corporation has no record of performance. If the corporation is successful, the stockholder may profit through increased valuation of the shares of stock, as well as by receiving dividends. Dividends are proportional amounts of profit usually paid quarterly to stockholders. However, if the corporation is not successful, the stockholder may take losses on the initial stock investment.
Often equity financing does not provide the corporation with enough capital and it must turn to debt financing, or borrowing funds. One example of debts financing is the sale of corporate bonds. In this type of agreement, the corporation borrows money from investor in return for bond. The bond has maturity date, a deadline when the corporation must repay all of the money it has borrowed. The corporation must also make periodic interest payment to the bondholder during the time the money is borrowed. If these obligations are not met, the corporation can be forced to sell its assets in order to make payments to the bondholders.
So the investments in bonds are less profitable, but at the same time less risky for investor. Although for issuer is more preferably to obtain capital through issuing shares of stock.
All businesses need financial support. Equity financing (as in the sale of stock) and debt financing (as in the sale of bonds) provide important means by which a corporation may obtain its capital.

Did you ever think about such questions as when and where the first stock exchange appeared? It was very interesting for me to try to get to know of its story.
So, I’d like to impart this information to you. Predecessors to modern stock exchange were medieval fairs where people could buy or sell bills of exchange. First it was in France in 12th century. There appeared guys who managed and regulated the debts of agricultural communities on behalf of the banks. We could call them first brokers.
Venetian bankers began to trade in government securities in the middle of the 13th century. Later the Dutch started joint stock companies, which let shareholders invest in business ventures. Then the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange in 1611. It was the first company to issue stocks and bonds. And the Amsterdam Stock Exchange is the oldest stock exchange in the world that exists at present time.
Right up to 1913 the Amsterdam Stock Exchange was the universal exchange where traders sold and bought both goods and seсurities. Just here all methods of security trade (for example, term deals, options, carry-over deals, margin deals, etc.) came into the world.
The technique of security trade was similar to the technique of exchange trade of goods, but insensibly the specific rules of conduct were elaborated. The greatest complexity for traders was the prohibition, which was implemented in 1622, “not to make the air blue”.
At the begining the access to the Amsterdam Stock Exchange was free; any trader had the right to to make bargain with anyone. Conclusion contract finished with the hand shake, which was one of the rules of the stock exchange.
As for stocks, only stocks of the first stock company in the Netherlands (Joint East India Company) circulated at the Stock Exchange.
The stock exchange based in Amsterdam merged on September 22, 2000 with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext, and is now known as Euronext Amsterdam.
The second according to the time of origing was the stock market of Great Britain. Exactly at the England territory made its appearance the first specialised exchange, when in 1773 London brokers rented a specil accommodation for their meetings. Membership at the stock exchange the same way as at the Amsterdam Stock Exchange was free, anyone who wished were able to take part in trade, but he had to pay for it 6 pence per day.

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