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CAPITAL MARKET
Presented by,
Group- 4
Financial Markets
FINANCIAL MARKETS
ORGANIZED MARKET
CAPITAL MARKET
MONEY MARKET
UNORGANIZED MARKET
MONEY
LENDERS,INDIGENE...
Capital Markets
Provided resources needed by medium and large
scale industries.
Purpose for these resources
Expansion
...
Main Activity
Functioning as an institutional mechanism to
channelize funds from those who save to those who
needed for ...
SIGNIFICANCE
• Growth of savings,
• Efficient allocation of investment resources,
• Better utilization of the existing res...
Capital market instrument
• Debt
• Prefernce share
• Equity
• ADRs/GDRs
• Derivatives
Primary market
• The primary market is that part of the capital
markets that deals with the issue of new
securities
• The ...
Types of issues in Primary market
• Initial public offer (IPO)
• Follow-on public offer (FPO)
• Rights offer
• Preferentia...
Secondary market
• The secondary market is the financial market
where previously issued securities and
financial instrumen...
Structure of Capital Markets
Primary Markets Secondary Markets
When companies need financial resources for
its expansion, ...
Stock exchange
•
• A marketplace in which securities,
commodities, derivatives and other financial
instruments are traded....
Leading stock exchanges:
• Bombay Stock Exchange Limited
• National Stock Exchange
• New York Stock Exchange NYSE)
• NASDA...
Functions of Stock Exchanges
• Liquidity and marketability of securities
• Fair price determination
• Source of long-tern ...
Capital Market Intermediaries
Merchant Banks
• mostly in international finance.
• long-term loans for companies.
• no regular banking services to the ge...
Custodian
• customers' securities for safekeeping.
• electronic or physical form.
• tend to be large and reputable firms.
Stock brokers
• Buys and sells shares and other securities
• Sub-brokers
• Stock brokers- Sharekhan, Angel broking ltd,
Ko...
Foreign Institutional Investors (FII)
• registered in a country outside of the one in
which it is currently investing.
• i...
Mutual Fund
• a pool of funds collected from many investors
• portfolio is structured
(e.g.) Kotak Mahindra, HDFC mutual f...
Registrar
• An institution or organization that is responsible
for keeping records of bondholders and
shareholders.
Venture Capital
• investors seeking private equity stakes in
startup and small- and medium-size
enterprises.
• high-risk/h...
Underwriter
• an intermediary between the issuing company
and the investors
• buys the newly issued securities from the
co...
Portfolio Managers
• persons responsible for investing
• implements investment strategy
• manages the day-to-day portfolio...
ORGANISATIONS
BSE(Bombay Stock Exchange)
NSE(National Stock Exchange)
National Securities Depository Limited (NSDL)
and Central Securities Depository Limited
(CSDL)
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Transcript of "0 capital market"

  1. 1. CAPITAL MARKET Presented by, Group- 4
  2. 2. Financial Markets FINANCIAL MARKETS ORGANIZED MARKET CAPITAL MARKET MONEY MARKET UNORGANIZED MARKET MONEY LENDERS,INDIGENEOU S BANKERS
  3. 3. Capital Markets Provided resources needed by medium and large scale industries. Purpose for these resources Expansion Capacity Expansion Investments Mergers and Acquisitions Deals in long term instruments and sources of funds
  4. 4. Main Activity Functioning as an institutional mechanism to channelize funds from those who save to those who needed for productive purpose. Provides opportunities to various class of individuals and entities.
  5. 5. SIGNIFICANCE • Growth of savings, • Efficient allocation of investment resources, • Better utilization of the existing resources
  6. 6. Capital market instrument • Debt • Prefernce share • Equity • ADRs/GDRs • Derivatives
  7. 7. Primary market • The primary market is that part of the capital markets that deals with the issue of new securities • The primary market provides the channel for creation of funds through issuance of new securities by companies, governments, or public institutions.
  8. 8. Types of issues in Primary market • Initial public offer (IPO) • Follow-on public offer (FPO) • Rights offer • Preferential issue/ bonus issue/ • Composite issue
  9. 9. Secondary market • The secondary market is the financial market where previously issued securities and financial instruments such as stocks, bonds, options, and futures are traded
  10. 10. Structure of Capital Markets Primary Markets Secondary Markets When companies need financial resources for its expansion, they borrow money from investors through issue of securities. The place where such securities are traded by these investors is known as the secondary market. Securities issued a) Preference Shares b) Equity Shares c) Debentures Securities like Preference Shares and Debentures cannot be traded in the secondary market. Equity shares is issued by the under writers and merchant bankers on behalf of the company. Equity shares are tradable through a private broker or a brokerage house. People who apply for these securities are: a) High networth individual b) Retail investors c) Employees d) Financial Institutions e) Mutual Fund Houses f) Banks Securities that are traded are traded by the retail investors. One time activity by the company. Helps in mobilising the funds for the investors in the short run.
  11. 11. Stock exchange • • A marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function of a stock exchange is to ensure fair and orderly trading, as well as efficient dissemination of price information for any securities trading on that exchange
  12. 12. Leading stock exchanges: • Bombay Stock Exchange Limited • National Stock Exchange • New York Stock Exchange NYSE) • NASDAQ • London Stock Exchange
  13. 13. Functions of Stock Exchanges • Liquidity and marketability of securities • Fair price determination • Source of long-tern funds • Helps in capital formation • Reflects general state of economy
  14. 14. Capital Market Intermediaries
  15. 15. Merchant Banks • mostly in international finance. • long-term loans for companies. • no regular banking services to the general public. • (e.g.) Goldman Sachs etc..
  16. 16. Custodian • customers' securities for safekeeping. • electronic or physical form. • tend to be large and reputable firms.
  17. 17. Stock brokers • Buys and sells shares and other securities • Sub-brokers • Stock brokers- Sharekhan, Angel broking ltd, Kotak Securities etc..
  18. 18. Foreign Institutional Investors (FII) • registered in a country outside of the one in which it is currently investing. • include hedge funds, insurance companies, pension funds and mutual funds. • (e.g.) Kotak Mahindra (UK)ltd, Morgan Stanley investment management etc..
  19. 19. Mutual Fund • a pool of funds collected from many investors • portfolio is structured (e.g.) Kotak Mahindra, HDFC mutual fund etc..
  20. 20. Registrar • An institution or organization that is responsible for keeping records of bondholders and shareholders.
  21. 21. Venture Capital • investors seeking private equity stakes in startup and small- and medium-size enterprises. • high-risk/high-return opportunities. • (e.g.) Reliance venture, DFJ India etc..
  22. 22. Underwriter • an intermediary between the issuing company and the investors • buys the newly issued securities from the company and sells them to investors on the secondary market.
  23. 23. Portfolio Managers • persons responsible for investing • implements investment strategy • manages the day-to-day portfolio trading. • (e.g.) UTI etc..
  24. 24. ORGANISATIONS
  25. 25. BSE(Bombay Stock Exchange) NSE(National Stock Exchange)
  26. 26. National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CSDL)
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