2. The Trinidad and Tobago NGL Limited (NGL), is one of the stocks listed in the Energy Sector on the local stock exchange. The company's initial public offering (IPO) was in October 2015 and the company was listed for the first time on October 19, 2015: at an opening price of $20,00 Required: i. If an investor purchased shares in the IPO at $20.00, would this investor have experienced a capital gain or loss if he/she decided to sell the stock on June 25, 2021? 3 Marks ii. When did this share trade at its highest price since its IPO? What was this price? If an investor who purchased shares at the IPO, sold his holdings on this day, what would have been his capital gain/loss? 3 Marks iii. Based on your analysis in parts i) and ii), what do you garner about investing in the stock market? 4 Marks iv. If an investor held NGL shares since its IPO, what is the total dividends per share that he/she would have received to date? Provide details by payment date. 5 Marks According to the history of The Trinidad And Tobago Stock Exchange (TTSE) (https://www.stockex.co.tt) The Securities Trinidad & Tobago Market which informally existed in Trinidad & Tobago for well Stock Exchange Creating Opportunities over twenty years prior to the opening of the Trinidad & Tobago Stock Exchange really achieved significance in the early 1970's when Government decided as a matter of policy to localise the foreign owned commercial banking and manufacturing sectors of the economy. The thrust of the policy was to get such companies to divest and sell a majority of their shares to nationals. Two bodies chosen to effect this policy were the Capital Issues Committee which was set up by the Ministry of Finance in July 1970 to direct developments in the primary market and the Call Exchange (an association of share dealers) which was established under the umbrella of the Central Bank in August 1965 to monitor activities in the secondary market. Parallel to this development in the public sector in the early 1970's was the rapid establishment of private institutions such as trust companies and stock broking firms to satisfy the demands of investors in both the primary and secondary markets. With such infrastructure in place and the concomitant increase in the securities business, the decision was taken to establish a securities market within a framework of established Rules and Regulations to facilitate the development of the domestic capital market. The establishment of the Stock Exchange under the provisions of the Securities Industry Act 1981 was a natural extension of the policy to formalise the securities market in Trinidad and Tobago. This Act was proclaimed on the 23rd October, 1981 and the Stock Exchange was formally opened on the 26th October, 1981 under the auspices of the Ministry of Finance. The Trinidad and Tobago Stock Exchange Limited (TTSE): Facilitates the buying and selling of securities. Provides a medium for companies to raise capital. The TTSE is a limited liability company. The TTSE is a Self Regulatory Organization responsible for developing rules and guidelines for the operation within the local stock market. These rules and guidelines are followed by the brokerage firms and listed companies. 2. The Trinidad and Tobago NGL Limited (NGL), is one of the stocks listed in the Energy Sector on the local stock exchange. The company's initial public offering (IPO) was in October 2015 and the company was listed for the first time on October 19, 2015: at an opening price of $20,00 Required: i. If an investor purchased shares in the IPO at $20.00, would this investor have experienced a capital gain or loss if he/she decided to sell the stock on June 25, 2021? 3 Marks ii. When did this share trade at its highest price since its IPO? What was this price? If an investor who purchased shares at the IPO, sold his holdings on this day, what would have been his capital gain/loss? 3 Marks iii. Based on your analysis in parts i) and ii), what do you garner about investing in the stock market? 4 Marks iv. If an investor held NGL shares since its IPO, what is the total dividends per share that he/she would have received to date? Provide details by payment date. 5 Marks According to the history of The Trinidad And Tobago Stock Exchange (TTSE) (https://www.stockex.co.tt) The Securities Trinidad & Tobago Market which informally existed in Trinidad & Tobago for well Stock Exchange Creating Opportunities over twenty years prior to the opening of the Trinidad & Tobago Stock Exchange really achieved significance in the early 1970's when Government decided as a matter of policy to localise the foreign owned commercial banking and manufacturing sectors of the economy. The thrust of the policy was to get such companies to divest and sell a majority of their shares to nationals. Two bodies chosen to effect this policy were the Capital Issues Committee which was set up by the Ministry of Finance in July 1970 to direct developments in the primary market and the Call Exchange (an association of share dealers) which was established under the umbrella of the Central Bank in August 1965 to monitor activities in the secondary market. Parallel to this development in the public sector in the early 1970's was the rapid establishment of private institutions such as trust companies and stock broking firms to satisfy the demands of investors in both the primary and secondary markets. With such infrastructure in place and the concomitant increase in the securities business, the decision was taken to establish a securities market within a framework of established Rules and Regulations to facilitate the development of the domestic capital market. The establishment of the Stock Exchange under the provisions of the Securities Industry Act 1981 was a natural extension of the policy to formalise the securities market in Trinidad and Tobago. This Act was proclaimed on the 23rd October, 1981 and the Stock Exchange was formally opened on the 26th October, 1981 under the auspices of the Ministry of Finance. The Trinidad and Tobago Stock Exchange Limited (TTSE): Facilitates the buying and selling of securities. Provides a medium for companies to raise capital. The TTSE is a limited liability company. The TTSE is a Self Regulatory Organization responsible for developing rules and guidelines for the operation within the local stock market. These rules and guidelines are followed by the brokerage firms and listed companies
