A room that every millionaire’s dreams to get in — Called STOCK MARKET~ (Part 01)

The term of capital market is so widespread that every country in the world has a capital market. Who first started this market system?

There is no single person who is attributed for the invention of the stock market. However, the first stock markets emerged in 15th century Europe, in Antwerp and London. The modern stock market originated in Amsterdam in 1602 with the establishment of the Dutch East India Company. Some other source, Benjamin Graham was a well-known and recognized figure in the stock market industry. Many refer to Benjamin Graham as the father of value investing, for he was the one who introduced the concept to the world. The New York Stock Exchange traces its origins to the Buttonwood Agreement signed by 24 stockbrokers on May 17, 1792, as a response to the first financial panic in the young nation. The use of “bull” and “bear” to label financial markets has several different possible origins. However, the terms could come from how these animal's attack: a bull thrusts its horns upward, symbolizing rising prices, while a bear swipes its paws downward, representing. and the bull was sculpted by artist Arturo Di Modica in the aftermath of the 1987 stock market crash, and publicly installed in 1989 at the end of Broadway and near Wall Street.

Let’s start from the beginning again. for an example of an ordinary businessman, he has a small business where he only sells cold tea. Let’s say special cold perfumed tea. Which costs two dollars. His constant efforts are how to take this small business scope of his to a big scale. He believes that this product will go very popular one day, he will grow in future for sure but now, He is short of money. And in this case no institutional financial farm or bank do not invest him for it because he doesn't have any assets to mortgage, then he thought, I look around from whom I can take some money and expand the business. He took two friends as partners. The two partners invested a some and made his business a little bigger and known as start-up company. Where before his turnover was 5000 USD per month. Now he earns 60000 USD per month. Then gradually they changed from partnership company to limited company. Their aim is to make it bigger. If this business now wants to spread to ten more outlets or cities, then he needs more money. struggle started for the more investment. here we learn another word call Angel investments. An angel investor is usually a wealthy individual who will invest his money in a company what they feel this will must grow in the future .and they invest big money and buy the share for win win case in future.

“Usually a start-up” that is in the early stages of development. Angel investors expect to take ownership positions in the companies they support because their capital is unsecured-they have no claim on the company’s assets.

And angel investor also known different words like business angel, in formal investor, angel funder, private investor or seed investor. These angel investors are always a dream come true for start-up company owners. Every start-up company owner thinks that his business will be very prosperous in the future and become a big multinational company soon, but there is a lack of people to believe in him or to invest in him. Investors are not easily found. The company does not have any assets that would encourage any investors. As the owner of the company, the investor has to convince, give a perfect presentation, present status and future dreams with the products, value, future, profit, etc. etc. Private investors are the only hope for start-up companies when financial institutions turn away. He will invest a large amount of money in this company from his own company. Let’s say the value of this company after investment is one million dollars. This is how a start-up company and an angel investor come into contact. Like Warren Buffett in America, Ratan Tata in India is considered as an angel investor. Ratan Tata is the founder of many start-up companies including, Lans kart, Paytm, Snapdeal, ola electric, similarly Warren Buffet has investments, Apple, Bank of America, American Express, coca cola, Chevron, OXY, etc. A celebrity investor’s investment has many advantages over an ordinary investor. Warren Buffett is a famous person. When he invested in that company, the company also became famous overnight. Ratan tata is the same as in Asia.

Angel investors are wealthy private investors focused on financing small business ventures in exchange for equity. Unlike a venture capital firm that uses an investment fund, angels use their own net worth.

Every year 200,000+ American angels invest an estimated $25B in more than 71,000 startup deals. Although angels have powerful impact, little else is known about these high-net worth individuals. This first-ever study will define the American Angel today. The famous name also is Neval Ravikanth, Ron Conway, Alexis Ohanian, Paul Buchheit, Fabrice Grinda, Chris Sacca, Mark Cuban, Max lev chin, Dave McClure are also world-famous Angel investors.

Jointly launched by the Angel Capital Association and Wharton Entrepreneurship, this ground-breaking campaign benchmarks the mix of angel investors across America by age, gender, ethnicity and pinpoint any commonalities such as the path that got them there or how they discover and fund early-stage companies. The 2017 results confirm some assumptions but include many surprises.

Companies that can slowly build assets or turnover of about a billion dollars with the help of private angel investors are called unicorns. According to Hurun Global index 2023, Direct foreign investment (FDI) is higher in countries who have more Soonicorn or unicorn companies.

India in 2023 had 67 unicorns, which is one less than 68 such startups last year, according to the latest Hurun Global Unicorn Index. The US led the list with 703 unicorns, up 37 from 2022, and China worth 340 unicorns. UK and EU ranked No 4 and No 5 in the list, respectively.

The Global Unicorn Index is compiled by the Hurun Research Institute, and includes companies founded in the 2000s with a current valuation of US$1bn, not yet listed on a public exchange. Cut-off for this year’s index was 1 January 2024, with significant valuation changes updated up to the date of release.

Our main topic of discussion though was the stock market. As mentioned earlier, it is such a vast subject that it is difficult to cover in such a short time. Therefore, before directly entering the capital market, an attempt is made to give a brief description of how startup entrepreneurs are institutionalized internationally. To enter the capital market

Larger companies may wait until they generate $100 million to $250 million or even $500 million in revenue before going public. With the JOBS Act, an IPO revenue level can be lower than $50 million, as can a company’s total assets.

The financial statements must not be more than 134 days old. As such, unaudited interim financial statements may also be required depending on the length of time elapsed between the most recent fiscal year-end and the filing of the registration statement.

Each exchange has minimum entry listing requirements, including profit history, shareholders’ equity, size of market capitalization, number of expected shareholders and corporate governance. Each exchange is also known for attracting certain types of companies in different industries and stages of development.

1999 BlackRock makes its Initial Public Offering on the New York Stock Exchange on October 1st, for $14 a share. By the end of that year, the firm had $165 billion in assets under management due to its strengthening relationships with global institutions. current asset is more then 11 trillion USD.

After entering the capital markets. IPO (Initial Public Offering) be it to begin with, there is no looking back if the company runs properly and prospers thereafter. Money started coming in quickly from the capital market. Companies can then go from millions to billions, trillions of dollars. The start-up term we used in the initial discussion was under a billion dollars. This company is called Mini corn. Then when the company wealth continues to increase, it is called Soonicorn, appreciate asset 400–500 million USD, then comes the Unicorn company which has crossed one billion dollars.

Unicorn start-up companies are not very easy or available. A company’s value or investment can range from one billion dollars to 10 billion dollars. The more unicorn companies there are in the country, the more employment opportunities there will be, and the country’s economy will flourish.

A tech, financial, or fintech companies worth more than $ 100 billion is called Hectocorn. Or there is another name for the company, this corporation is “Super Unicorn”. It is not uncommon that one of our familiar names such as Apple, Google, Microsoft, Facebook, Oracle and Cisco are examples of Heactacorn.

Then as usual comes Decacorn (companies like Bytedance ,OpenAI,Epic Games,Revolut,Deel,Stripe,Databricks,Rippling ) Chester of companies with a current valuation of over $10 billion. Total Number of Decacorn Companies (Globally): 48

Then comes Hectacorn, such companies are usually among the world-famous companies. For example, SpaceX. For private companies valued over $100 billion, the terms “centicorn” and “hectocorn” have been used.

“Hectocorn or super unicorn” are those companies whose valuations are more than $100 Billion. These companies are mainly tech related. Hectocorn companies are Apple, Google, Microsoft, Facebook, Oracle, SpaceX, Cisco etc.

Will soon come with the 2nd part of the capital market more details ,keep in touch.

KNN Linku

Writer, Columnist

knnlinku @ gmail.com