SlideShare a Scribd company logo
Group member:
Abdul Moeed Butt (006)
Moaaz Zulfiqar (007)
Muhammad Ali Mughal (014)
Ayesha Sadiqa (010)
Ali Hassan (001)
Majid Alvi (022)
Course:
BUSINESS FINANCE
Final Project of Business Finance
CAPITAL MARKET
What is finance?
The cash flow between capital market and firms operation
finance is the management of money matters.
An example of finance is:
the department that handles the
budgets for a company.
AN OVERVIEW OF FINANCIAL SYSTEM
What is investment?
Money we earn is partly spent and rest saved meeting future
expense. Instead of keeping the savings idle we like to use saving in
order to get return on it in future. This is called investment
Why invest?
Earn return on idle resources
Generate sum of money for specified goal of life
Make provision for uncertain future
To meet the cost of inflation
There are two types of investments.
Short run investment
In short run investment
investor invest the cash
in company and
company is only giving
dividend company
perspective is only giving
dividend to investor
Long run investment
In long investment
company is not giving
dividend to its investors
but reinvesting the
investors profits in
company and trying to
increase the firm value
in long run.
Informative
When the value of share
increase it means that
company is running in the
right direction.
Capital market
Companies and governments can raise long-term funds. It is a market
in which money is lent for periods longer than a year. A nation's
capital market includes such financial institutions as banks, insurance
companies, and stock exchanges that channel long-term investment
funds to commercial and industrial borrowers.
Moneymarket
The trade in short-term loans between banks and other
financial institutions.
Capital market vs money market
Capital market divides into two markets:
Bond Market
The bond market (also known as the debt, credit, or fixed income market) is a financial
market where participants buy and sell debt securities, usually in the form of bonds.
The New York Stock Exchange (NYSE) is the largest centralized bond market, representing
mostly corporate bonds.
Types of Bond Markets
Types
of bond
Corporate
Government
and agency
municipal
Funding
Stock Market
A stock market is a public market for the trading of company stock and derivatives at
an agreed price; these are securities listed on a stock exchange as well as those only
traded privately.
Function and Purpose
The stock market is one of the most important sources for companies to raise money.
This allows businesses to be publicly traded, or raise additional capital for expansion
by selling shares of ownership of the company in a public market. The liquidity that an
exchange provides affords investors the ability to quickly and easily sell securities. This
is an attractive feature of investing in stocks.
Stock Exchange In Pakistan
There are three Stock Exchanges
1. Karachi Stock Exchange (KSE)
2. Lahore Stock Exchange (LSE)
3. Islamabad Stock Exchange (ISE)
Capital market is divided into two types:
CAPITAL MARKET
PRIMARY MARKET SECONDARY MARKET
FEATURES
1. This is the market for new long term capital. The
primary market is the market where the
securities are sold for the first time. Therefore it
is also called New Issue Market (NIM).
2. The securities are issued by the
company directly to investors.
3. The company receives the money and issue new
security certificates to the investors.
FEATURES
1. Help in determining fair prices based on
demand and supply forces and all available
information
2. Provides easy marketability and liquidity for
investors
How the company is listed in stock exchange.
Capital market
risk and return
Systematic
risk
Unsystematic
risk
Default risk
Foreign
exchange risk
Interest rate
risk
Political risk
Why stock price moves up &
down
Financial result
and bright or
depressive
expectations
Some
incentives
/ tax effect
the stock
Company
doing good
or bad
business
New innovative
product
launched/business
explored
CDC Sub account
Investor sub account, if investor wants to buy shares
from stock exchange he use the CDC sub account.
Some important things in stock market reporting
1) Beta: measure systematic risk
2) Market cap: set the upper limit of share
3) Bid: ask the order
4) Ask: (seller) ask to sell the shares
 What is the more important for investor to see in company cash flow or
net income?
As an investor in any company we’ll see the cash flow more instead of net
income.
Basic formulas
Net income:
Cash flow:
Why cash flow:
As a perspective of investor cash flow is more important for him/her,
because cash flow is the total cash circulates in company.
But the net income is more important for owner to check his/her income.
How any company can raise the capital?
Company can raise capital through listing your company.
Company
listed
IPO
Shares
issued
Investor
purchase
the shares
Company
gets cash
Capital
raise
Conclusion
Investor look at superior returns and
measured risk therefor he has to select
dynamically balanced asset allocation
mix consisting of the different
investment option available in the
financial market.
capital market (business finance)

More Related Content

What's hot

Capital market
Capital marketCapital market
Capital market
jaykumar003
 
Capital markets and Its Instruments
Capital markets and Its InstrumentsCapital markets and Its Instruments
Capital markets and Its Instruments
GautamChanana1
 
Capital market-instrument
Capital market-instrumentCapital market-instrument
Capital market-instrument
Monzur Morshed Patwary
 
Capital market
Capital marketCapital market
Capital market
Vasuki Maddodi
 
Financial market
Financial marketFinancial market
Financial market
ABHISHEK TIWARI
 
Share market report
Share market reportShare market report
Share market report
Purvi Gajera
 
Financial Market Ppt Kakul Zaidi
Financial Market Ppt Kakul ZaidiFinancial Market Ppt Kakul Zaidi
Financial Market Ppt Kakul Zaidi
Syed Zainvi
 
Overview of capital market
Overview of capital marketOverview of capital market
Overview of capital market
CS (Dr)Rajeev Babel
 
Financial Systems on 17th July ' 09
Financial Systems on 17th July ' 09Financial Systems on 17th July ' 09
Financial Systems on 17th July ' 09itsvineeth209
 
205 Financial Markets and Banking Operations UNIT3 D
205 Financial Markets and Banking Operations UNIT3 D205 Financial Markets and Banking Operations UNIT3 D
205 Financial Markets and Banking Operations UNIT3 D
ASM's IBMR- Chinchwad
 
Indian Capital Markets Basic
Indian Capital Markets BasicIndian Capital Markets Basic
Indian Capital Markets Basic
Abhijeet Deshmukh
 
Stock prices as economic indiactor
Stock prices as economic indiactorStock prices as economic indiactor
Stock prices as economic indiactor
Shruti Pendharkar
 
Financial markets - instruments and securities
Financial markets - instruments and securitiesFinancial markets - instruments and securities
Financial markets - instruments and securities
Shyama Shankar
 
Stock Market Basic
Stock Market BasicStock Market Basic
Capital market
Capital market Capital market
Capital market
Rahul Jain
 
Financial markets raju indukoori
Financial markets   raju indukooriFinancial markets   raju indukoori
Financial markets raju indukoori
Indukoori S S N Raju - MVGR DMS
 
Investment Management Stock Market
Investment Management Stock MarketInvestment Management Stock Market
Investment Management Stock Market
Dr. John V. Padua
 
Stock(Share) Market
Stock(Share) MarketStock(Share) Market
Stock(Share) Market
Ashish Chandak
 

What's hot (20)

Capital market
Capital marketCapital market
Capital market
 
Capital markets and Its Instruments
Capital markets and Its InstrumentsCapital markets and Its Instruments
Capital markets and Its Instruments
 
Capital market-instrument
Capital market-instrumentCapital market-instrument
Capital market-instrument
 
Capital market
Capital marketCapital market
Capital market
 
Capital market
Capital marketCapital market
Capital market
 
Financial market
Financial marketFinancial market
Financial market
 
Share market report
Share market reportShare market report
Share market report
 
Financial Market Ppt Kakul Zaidi
Financial Market Ppt Kakul ZaidiFinancial Market Ppt Kakul Zaidi
Financial Market Ppt Kakul Zaidi
 
Overview of capital market
Overview of capital marketOverview of capital market
Overview of capital market
 
Financial Systems on 17th July ' 09
Financial Systems on 17th July ' 09Financial Systems on 17th July ' 09
Financial Systems on 17th July ' 09
 
Equity Markets I
Equity Markets IEquity Markets I
Equity Markets I
 
205 Financial Markets and Banking Operations UNIT3 D
205 Financial Markets and Banking Operations UNIT3 D205 Financial Markets and Banking Operations UNIT3 D
205 Financial Markets and Banking Operations UNIT3 D
 
Indian Capital Markets Basic
Indian Capital Markets BasicIndian Capital Markets Basic
Indian Capital Markets Basic
 
Stock prices as economic indiactor
Stock prices as economic indiactorStock prices as economic indiactor
Stock prices as economic indiactor
 
Financial markets - instruments and securities
Financial markets - instruments and securitiesFinancial markets - instruments and securities
Financial markets - instruments and securities
 
Stock Market Basic
Stock Market BasicStock Market Basic
Stock Market Basic
 
Capital market
Capital market Capital market
Capital market
 
Financial markets raju indukoori
Financial markets   raju indukooriFinancial markets   raju indukoori
Financial markets raju indukoori
 
Investment Management Stock Market
Investment Management Stock MarketInvestment Management Stock Market
Investment Management Stock Market
 
Stock(Share) Market
Stock(Share) MarketStock(Share) Market
Stock(Share) Market
 

Viewers also liked

Audit of stock exchange final
Audit of stock exchange finalAudit of stock exchange final
Audit of stock exchange finalSako Mwakalobo
 
Secret du plus grand marécage des crocodiles du parc national de cat tien
Secret du plus grand marécage des crocodiles du parc national de cat tienSecret du plus grand marécage des crocodiles du parc national de cat tien
Secret du plus grand marécage des crocodiles du parc national de cat tien
Vietnam Original Travel
 
сквер дк салют
сквер дк салютсквер дк салют
сквер дк салютAtner Yegorov
 
OF HORSES DRAGGED TO WATER…
OF HORSES DRAGGED TO WATER…OF HORSES DRAGGED TO WATER…
OF HORSES DRAGGED TO WATER…Olu Alake
 
The missing pages- A manuscript of True Leadership
The missing pages- A manuscript of True LeadershipThe missing pages- A manuscript of True Leadership
The missing pages- A manuscript of True LeadershipAvinash Kumar
 
Attitude
AttitudeAttitude
Attitude
Jeffrey Owens
 
El uso del blog en una unidad de aprendizaje
El uso del blog en una unidad de aprendizajeEl uso del blog en una unidad de aprendizaje
El uso del blog en una unidad de aprendizaje
marfretiz28
 
1. como se organiza una empresa turística y hotelera yulexy
1.  como se organiza una empresa turística y hotelera yulexy1.  como se organiza una empresa turística y hotelera yulexy
1. como se organiza una empresa turística y hotelera yulexy
jobvyalg
 
Overview research project ALFREDO COREAS
Overview research project ALFREDO COREAS Overview research project ALFREDO COREAS
Overview research project ALFREDO COREAS
Alexander Barahona
 
Media KE 1
Media KE 1Media KE 1
Media KE 1
Hermita Caniago
 
презентация1
презентация1презентация1
презентация1Atner Yegorov
 

Viewers also liked (13)

Audit of stock exchange final
Audit of stock exchange finalAudit of stock exchange final
Audit of stock exchange final
 
Secret du plus grand marécage des crocodiles du parc national de cat tien
Secret du plus grand marécage des crocodiles du parc national de cat tienSecret du plus grand marécage des crocodiles du parc national de cat tien
Secret du plus grand marécage des crocodiles du parc national de cat tien
 
сквер дк салют
сквер дк салютсквер дк салют
сквер дк салют
 
cert 548
cert 548cert 548
cert 548
 
อสรพิษทางอินเตอร์เน็ต
อสรพิษทางอินเตอร์เน็ตอสรพิษทางอินเตอร์เน็ต
อสรพิษทางอินเตอร์เน็ต
 
OF HORSES DRAGGED TO WATER…
OF HORSES DRAGGED TO WATER…OF HORSES DRAGGED TO WATER…
OF HORSES DRAGGED TO WATER…
 
The missing pages- A manuscript of True Leadership
The missing pages- A manuscript of True LeadershipThe missing pages- A manuscript of True Leadership
The missing pages- A manuscript of True Leadership
 
Attitude
AttitudeAttitude
Attitude
 
El uso del blog en una unidad de aprendizaje
El uso del blog en una unidad de aprendizajeEl uso del blog en una unidad de aprendizaje
El uso del blog en una unidad de aprendizaje
 
1. como se organiza una empresa turística y hotelera yulexy
1.  como se organiza una empresa turística y hotelera yulexy1.  como se organiza una empresa turística y hotelera yulexy
1. como se organiza una empresa turística y hotelera yulexy
 
Overview research project ALFREDO COREAS
Overview research project ALFREDO COREAS Overview research project ALFREDO COREAS
Overview research project ALFREDO COREAS
 
Media KE 1
Media KE 1Media KE 1
Media KE 1
 
презентация1
презентация1презентация1
презентация1
 

Similar to capital market (business finance)

Business finance
Business financeBusiness finance
Business finance
Moeed123
 
ROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENT
ROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENTROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENT
ROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENT
Libcorpio
 
Capital Market of Bangladesh
Capital Market of BangladeshCapital Market of Bangladesh
Capital Market of Bangladesh
Mehedi Hasan Shohag
 
Indian Capital market
Indian Capital marketIndian Capital market
Indian Capital market
Bharathithasan Saminathan
 
CAPITAL MARKET.pptx
CAPITAL MARKET.pptxCAPITAL MARKET.pptx
CAPITAL MARKET.pptx
Vikash Barnwal
 
9311185.ppt
9311185.ppt9311185.ppt
9311185.ppt
priyeshgupta17
 
CAPITAL MARKET.pptx
CAPITAL MARKET.pptxCAPITAL MARKET.pptx
CAPITAL MARKET.pptx
SanjeetKumarShriwast
 
Security market.pptx
Security market.pptxSecurity market.pptx
Security market.pptx
MrShoh
 
1.nlt wsbs stock lecture notes
1.nlt wsbs stock lecture notes1.nlt wsbs stock lecture notes
1.nlt wsbs stock lecture notes
Nyan Linn Tun
 
Relationship manager training for stock market
Relationship manager training for stock marketRelationship manager training for stock market
Relationship manager training for stock market
Vivek Kumar
 
STOCK EXCHANGE.pptx
STOCK EXCHANGE.pptxSTOCK EXCHANGE.pptx
STOCK EXCHANGE.pptx
Vikash Barnwal
 
Stock market-Fundamentals.pptx
Stock market-Fundamentals.pptxStock market-Fundamentals.pptx
Stock market-Fundamentals.pptx
PonnusChannel
 
Share market details
Share market details Share market details
Share market details
Mehta Yash
 
Merit and the demerits of investing in the cse, (fem, slim)
Merit and the demerits of investing in the cse,  (fem, slim)Merit and the demerits of investing in the cse,  (fem, slim)
Merit and the demerits of investing in the cse, (fem, slim)
Royal Ceramics Lanka PLC
 
VR Secondary Market.pptx
VR Secondary Market.pptxVR Secondary Market.pptx
VR Secondary Market.pptx
SPJND
 
Stock exchange & listing
Stock exchange & listingStock exchange & listing
Stock exchange & listing
Nisha Gangwani
 
Financial management
Financial managementFinancial management
Financial management
Himani Sabharwal
 
National stock exchange of india limited
National stock exchange of india limitedNational stock exchange of india limited
National stock exchange of india limitedJayesh Jain
 

Similar to capital market (business finance) (20)

Business finance
Business financeBusiness finance
Business finance
 
ROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENT
ROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENTROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENT
ROLE OF STOCK ‎EXCHANGES IN ‎ECONOMIC ‎DEVELOPMENT
 
Capital Market of Bangladesh
Capital Market of BangladeshCapital Market of Bangladesh
Capital Market of Bangladesh
 
Indian Capital market
Indian Capital marketIndian Capital market
Indian Capital market
 
CAPITAL MARKET.pptx
CAPITAL MARKET.pptxCAPITAL MARKET.pptx
CAPITAL MARKET.pptx
 
9311185.ppt
9311185.ppt9311185.ppt
9311185.ppt
 
CAPITAL MARKET.pptx
CAPITAL MARKET.pptxCAPITAL MARKET.pptx
CAPITAL MARKET.pptx
 
Capital market
Capital marketCapital market
Capital market
 
Security market.pptx
Security market.pptxSecurity market.pptx
Security market.pptx
 
1.nlt wsbs stock lecture notes
1.nlt wsbs stock lecture notes1.nlt wsbs stock lecture notes
1.nlt wsbs stock lecture notes
 
Relationship manager training for stock market
Relationship manager training for stock marketRelationship manager training for stock market
Relationship manager training for stock market
 
STOCK EXCHANGE.pptx
STOCK EXCHANGE.pptxSTOCK EXCHANGE.pptx
STOCK EXCHANGE.pptx
 
Stock market-Fundamentals.pptx
Stock market-Fundamentals.pptxStock market-Fundamentals.pptx
Stock market-Fundamentals.pptx
 
Share market details
Share market details Share market details
Share market details
 
financial system
financial systemfinancial system
financial system
 
Merit and the demerits of investing in the cse, (fem, slim)
Merit and the demerits of investing in the cse,  (fem, slim)Merit and the demerits of investing in the cse,  (fem, slim)
Merit and the demerits of investing in the cse, (fem, slim)
 
VR Secondary Market.pptx
VR Secondary Market.pptxVR Secondary Market.pptx
VR Secondary Market.pptx
 
Stock exchange & listing
Stock exchange & listingStock exchange & listing
Stock exchange & listing
 
Financial management
Financial managementFinancial management
Financial management
 
National stock exchange of india limited
National stock exchange of india limitedNational stock exchange of india limited
National stock exchange of india limited
 

Recently uploaded

Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
Jean Carlos Nunes Paixão
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
Sandy Millin
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
Peter Windle
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
Delapenabediema
 
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
siemaillard
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
Jisc
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
JosvitaDsouza2
 
Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
Celine George
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
GeoBlogs
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
EugeneSaldivar
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
TechSoup
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
DeeptiGupta154
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
vaibhavrinwa19
 
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
MysoreMuleSoftMeetup
 
A Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in EducationA Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in Education
Peter Windle
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
EverAndrsGuerraGuerr
 
Additional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdfAdditional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdf
joachimlavalley1
 
The Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdfThe Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdf
kaushalkr1407
 
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXXPhrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
MIRIAMSALINAS13
 

Recently uploaded (20)

Lapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdfLapbook sobre os Regimes Totalitários.pdf
Lapbook sobre os Regimes Totalitários.pdf
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
 
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
 
The approach at University of Liverpool.pptx
The approach at University of Liverpool.pptxThe approach at University of Liverpool.pptx
The approach at University of Liverpool.pptx
 
1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx1.4 modern child centered education - mahatma gandhi-2.pptx
1.4 modern child centered education - mahatma gandhi-2.pptx
 
Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
 
Acetabularia Information For Class 9 .docx
Acetabularia Information For Class 9  .docxAcetabularia Information For Class 9  .docx
Acetabularia Information For Class 9 .docx
 
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
 
A Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in EducationA Strategic Approach: GenAI in Education
A Strategic Approach: GenAI in Education
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
 
Additional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdfAdditional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdf
 
The Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdfThe Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdf
 
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXXPhrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
Phrasal Verbs.XXXXXXXXXXXXXXXXXXXXXXXXXX
 

capital market (business finance)

  • 1.
  • 2. Group member: Abdul Moeed Butt (006) Moaaz Zulfiqar (007) Muhammad Ali Mughal (014) Ayesha Sadiqa (010) Ali Hassan (001) Majid Alvi (022) Course: BUSINESS FINANCE
  • 3. Final Project of Business Finance CAPITAL MARKET
  • 4. What is finance? The cash flow between capital market and firms operation finance is the management of money matters. An example of finance is: the department that handles the budgets for a company.
  • 5.
  • 6. AN OVERVIEW OF FINANCIAL SYSTEM
  • 7. What is investment? Money we earn is partly spent and rest saved meeting future expense. Instead of keeping the savings idle we like to use saving in order to get return on it in future. This is called investment
  • 8. Why invest? Earn return on idle resources Generate sum of money for specified goal of life Make provision for uncertain future To meet the cost of inflation
  • 9. There are two types of investments. Short run investment In short run investment investor invest the cash in company and company is only giving dividend company perspective is only giving dividend to investor Long run investment In long investment company is not giving dividend to its investors but reinvesting the investors profits in company and trying to increase the firm value in long run. Informative When the value of share increase it means that company is running in the right direction.
  • 10. Capital market Companies and governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. A nation's capital market includes such financial institutions as banks, insurance companies, and stock exchanges that channel long-term investment funds to commercial and industrial borrowers. Moneymarket The trade in short-term loans between banks and other financial institutions. Capital market vs money market
  • 11. Capital market divides into two markets:
  • 12. Bond Market The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds. The New York Stock Exchange (NYSE) is the largest centralized bond market, representing mostly corporate bonds.
  • 13. Types of Bond Markets Types of bond Corporate Government and agency municipal Funding
  • 14. Stock Market A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. Function and Purpose The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks.
  • 15. Stock Exchange In Pakistan There are three Stock Exchanges 1. Karachi Stock Exchange (KSE) 2. Lahore Stock Exchange (LSE) 3. Islamabad Stock Exchange (ISE)
  • 16. Capital market is divided into two types: CAPITAL MARKET PRIMARY MARKET SECONDARY MARKET FEATURES 1. This is the market for new long term capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called New Issue Market (NIM). 2. The securities are issued by the company directly to investors. 3. The company receives the money and issue new security certificates to the investors. FEATURES 1. Help in determining fair prices based on demand and supply forces and all available information 2. Provides easy marketability and liquidity for investors
  • 17. How the company is listed in stock exchange.
  • 18. Capital market risk and return Systematic risk Unsystematic risk Default risk Foreign exchange risk Interest rate risk Political risk
  • 19. Why stock price moves up & down Financial result and bright or depressive expectations Some incentives / tax effect the stock Company doing good or bad business New innovative product launched/business explored
  • 20. CDC Sub account Investor sub account, if investor wants to buy shares from stock exchange he use the CDC sub account. Some important things in stock market reporting 1) Beta: measure systematic risk 2) Market cap: set the upper limit of share 3) Bid: ask the order 4) Ask: (seller) ask to sell the shares
  • 21.  What is the more important for investor to see in company cash flow or net income? As an investor in any company we’ll see the cash flow more instead of net income. Basic formulas Net income: Cash flow: Why cash flow: As a perspective of investor cash flow is more important for him/her, because cash flow is the total cash circulates in company. But the net income is more important for owner to check his/her income.
  • 22. How any company can raise the capital? Company can raise capital through listing your company. Company listed IPO Shares issued Investor purchase the shares Company gets cash Capital raise
  • 23. Conclusion Investor look at superior returns and measured risk therefor he has to select dynamically balanced asset allocation mix consisting of the different investment option available in the financial market.