Capital and Money Market

1. A chance for companies to develop
their business

2. • Established for the purpose of
assisting,regulating and controlling business of
buying,selling and dealing in securities
• Provides a market for the trading of securities
to induviduals and organizations seeking to
invest their saving or excess funds through the
purshase of securities

3. • Established rules for fair trading
practice and regulates the trading
activities of its members according to
this rules
• Provides a physical location for buying
and selling securities that have been
listed for trading on that exchange

4. • Stock is a share in the ownership of a
company. It represents a claim on
the company's assets and earnings
• Whether you say shares, equity or
stock, it all means the same thing.

5. • When a company would like to grow, it
issues stocks to raise funds and pay for
ongoing business activities
• It is popular because:
-The company does not have to repay the
money
-Paying dividends is optional

6. • By following mean’s
• Debentures
• Equity
• Loan’s

7. What is a stock market?
• Place where business of buying and
selling stock takes place
• The stock market is not a specific
place, though some people use a specific
term

8. Desirable Characteristics of a stock
market
• Availability of Information Market efficiency
• Prices react quickly to new information
• Small price fluctuations
• Narrow price spread

9. • Primary market
-Channel for creation of new securities
• Secondary market
-The new securities issued in the primary
market are traded the secondary market

10. Market Timings
• Trading on the equities segment takes place on all
days of the week (except Saturdays and Sundays and
holidays declared by the exchange in advance)
• The market timings of the equities segment are:
Normal market open : 09:55 hours
Normal market close : 15:30 hours
The closing session is held between 15.50hours and
16.00 hours

11. • People who buy or sell stock on an exchange
do so through a broker
• The broker takes your order to the floor of the
exchange looks for a broker representating
someone wanting to buy/sell.
• If a mutually agreeable price is found the
trade is made

13. • List any company in the stock exchange is not
easy.
WHY?
He has to satisfy many legal
requirements under the lays regulation public
companies as well the stock exchange listing
requirements

14. Listing Requirements
• There are specific requierements for allowing
a public company to list its securities on the
stock exchange these are set out in the
legislation
• However when a company is listed in a stock
exchange it enjoys many benefits compared to
when it was a private limited liability
company.

15. • Visibility
• Market Support
• Investors Confidence
• Increased demands for products and services
• Overall increase in profitability

16. …Once Traded
• Aura of reliability
• Accuracy in Reporting financial Data
• Reputation
• Strength
BUT….

17. • Stock exchange can delist companies for number
of reasons including:
 Merger with another companies
Solvency Problems
Name change company asked to be removed
Failure to comply with exchange rules

18. • A company listed in the stock exchange has
considerable benefits compared to a private
limited liability company if that company can
satisfy the legal requirements for a public
company
• Stock exchange listing of a company has many
durable benefits to the company in terms of its
potential to grow and expand than a private
limited liability company