AMAMCO Capital


Equity Capital 2000 System


One of the best alternatives is to raise capital funds for international projects through the free Capital Market in Germany .

A brief summary of the equity capital market in Germany and its opportunities

Not too many entrpreneurs are familiar with the alternative ways of raising equity capital by private placements at the so called free capital market in Germany.

However , the range of possible and offerable

" free - capital - market - products " is wider and much more interesting than a listed IPO - Initial Public Offering or Going Public at the stock exchange.

Especially an issue without securities or bonds - which would be a lower cost opportunity than the usual sort of shares - can be offered

(even with tax profits ) and sold at the free capital market.
In 1997 alone the Free Capital Market in Germany had a turnover of Deutsche Mark DM 300 billion and DM 30 billion of it was invested in the private placement market and is therefore a strong and powerfull market.

The conditions of the free capital market of Germany can also be obtained by foreign corporations .

The equity capital structure of small and medium size German businesses leaves much to be desired compared to organizations in other countries of the industrial nations.

The equity ratio ( equity capital in relation to liabilities ) is quite often well below 5 % and is thus considerably low. The equity capital weakness of German organizations has inherent traditional causes and is to be found , among others , in the German universal bank system.

The US for example has the so called system of functional seperation in which commercial banks ( lending banks ) together with investment banks ( issuing institutions ) are in competition to each other.

In contrast , there is no procurement competition in Germany between capital from outside sources and equity capital owing to the monopoly bank structure so that German banks are rather more interested in loans ( and thus in continious income of interest ) than in equity capital issues attracting a one - off issue fee only

The German Market Germany has no issuing banks whose key business is the procurement of equity capital for organizations in the form of capital market issues. Admission of official listings are , therefore , very rare in Germany and , compared internationally , the number of 680 listed German corporations at the nine stock exchanges in Germany is small.

In contrast , the US and Japan boast many thousands of listed corporations enabling them to use the stock exchange as an equity capital market. The New York Nasdaq stock exhange alone has a listing of more than 6000 corporations.

Therefore , the competitively structured bank system has lead to a much more developed sense and awareness in the countries mentioned and the population ( the investing public ) for investments in productive risk capital of the economy.

The productive capital being the prerequisite for the function of the economy , it creates jobs for people and corresponding taxes for the community. The alternative method of taking up equity capital via private issue and placement in the free capital market is little known in Germany.

The range of investment opportunities on offer within the scope of a private issue is much wider and more interesting than an issue via the stock exchange. In particular , investments without negotiable instruments and thus more cost effective ( even including tax advantages ) , may be offered and marketed on the free capital market.

Why not take this opportunity and finance your project . The project will be initiated , managed & marketed by Attorneys , Economists and Tax Specialists, with over 20 years experience. A financial service for the transfere of private capital into entrepreneurial productive capital. The total volume of capital issues they have attended to , managed and supported exceeds DM 4 billion.

The private placement support will be extended by the contractual cooperation with 23 marketing coordinating companies and marketing supporters on a national level . Marketing support will also be initiated through seminars and traninig of investment sales staff. You may also place your Company Fund and the sale of its shares on an international level via internet ePM Electronic Private Placement ePO - Electronic Public Offering. or start an offshore private placement - mutual fund.

Our affiliates German Business Law Consulting Firm is experienced in all types of investment such as : issue of shares , investment in participation of certificates , Cooperative Associations shares , Fund Prospects , silent participation issues and bearer bonds.
 

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