Why small is beautiful - sometimes
Article Abstract:
Shares in small UK companies have performed well in the UK in 1996 with a 16% rise in the SmallCap index compared with 2% for the FT-SE 100. This follows underperformance for small company shares in 1994 and 1995. Small firms are seen as likely to benefit from stronger growth in the UK economy in 1997 since they have greater exposure to the domestic economy. There is a debate as to how far shares in small companies may be overvalued in some countries but this is less true for the UK since they were previously undervalued.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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The looming return of cash calls
Article Abstract:
Under 50 UK companies have carried out rights issues in 1996 but this could change. Companies are not generating as much cash as they were from 1993 to 1995 so rights issues may be carried out to fund acquisitions. The need for external funding is likely to rise with a slowdown in profit growth and a rise in capital spending, dividend payments and tax. More equity issues could be the result, but there are other sources of capital so this is not certain.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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