Mr. ACE, owner of ACE Textile Ltd, wants to expand his business after making a deal to export textiles to Gucci. However, he needs capital to fund the expansion. There are two main options for raising capital: banks or the capital market. While banks can provide loans, the process is lengthy and interest rates are high. The capital market allows companies to raise funds by issuing stock on the public market. It involves the primary market for new stock issues and the secondary market for subsequent trading of those stocks. Mr. ACE could issue an IPO on the primary market to raise funds for his expansion plans.
Differences between Fundamental Analysis and Technical AnalysisDhanashri Academy
A lot of traders especially the beginner traders are being confuse about the differences between the fundamental and technical analysis. Here we explain the difference between fundamental and technical analysis, and discuss how to determine which investing approach is best for you.
This is a presentation on the stock markets in India. Various parameters considered while trading, scams etc. It was delivered as a seminar presentation in college
Businesses may be organized in a number of different ways, including sole proprietorships, partnerships or corporations. A business may offer to sell a portion of its ownership by issuing stock.
Stock market and share market essentially mean the same thing. Both terms describe an exchange in which buyers and sellers of stock or shares may trade in a market with high liquidity
Differences between Fundamental Analysis and Technical AnalysisDhanashri Academy
A lot of traders especially the beginner traders are being confuse about the differences between the fundamental and technical analysis. Here we explain the difference between fundamental and technical analysis, and discuss how to determine which investing approach is best for you.
This is a presentation on the stock markets in India. Various parameters considered while trading, scams etc. It was delivered as a seminar presentation in college
Businesses may be organized in a number of different ways, including sole proprietorships, partnerships or corporations. A business may offer to sell a portion of its ownership by issuing stock.
Stock market and share market essentially mean the same thing. Both terms describe an exchange in which buyers and sellers of stock or shares may trade in a market with high liquidity
RBI Grade B Phase II Descriptive Super Notes: Finance and ManagementPsychoTech Services
Reserve Bank of India Grade B Exam Super Notes: If you are preparing for Phase II of the Grade B examination of Reserve Bank of India - these are a must-have. Visit http://sirfbusiness.blogspot.com for more info.
---
This is work in progress, may or may not be completed.
"This presentation covers the fundamentals of the Indian capital markets. It includes a briefing on the various instruments available for fund raising and investing. It will help you understand the basics of shares, debentures, bonds, commodities and other instruments".
The chapter comprises of Primary Market - Its Role and Functions; Issue of Capital - Methods of Issuing Securities in Primary Market, Intermediaries in New Issue Market - Merchant Bankers, Underwriters, Brokers, Registrars and Managers Bankers; Pricing of Issue - Book Building, Green Shoe Option, Procedure for New Issues and SEBI Guidelines for Issue in Primary Market.
The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.
These trades provide an opportunity for investors to buy securities from the bank that did the initial underwriting for a particular stock.
An IPO occurs when a private company issues stock to the public for the first time.
Companies and government entities sell new issues of common and preferred stock, corporate bonds and government bonds, notes, and bills on the primary market to fund business improvements or expand operations. Although an investment bank may set the securities' initial price and receive a fee for facilitating sales, most of the funding goes to the issuer. Investors typically pay less for securities on the primary market than on the secondary market.
A rights offering (issue) permits companies to raise additional equity through the primary market after already having securities enter the secondary market. Current investors are offered prorated rights based on the shares they currently own, and others can invest anew in newly minted shares.
Companies can raise capital at relatively low cost, and the securities so issued in the primary market provide high liquidity as the same can be sold in the secondary market almost immediately.
The primary market is an important source for mobilisation of savings in an economy. Funds are mobilised from commoners for investing in other channels. It leads to monetary resources being put into investment options.
Chances of price manipulation in the primary market are considerably less when compared to the secondary market. Such manipulation usually occurs by deflating or inflating a security price, thereby deliberately interfering with fair and free operations of the market.
The primary market acts as a potential avenue for diversification to cut down on risk. It enables an investor to allocate his/her investment across different categories involving multiple financial instruments and industries.
It is not subject to any market fluctuations. The prices of stocks are determined before an initial public offering, and investors know the actual amount they will have to invest.
A Project Report on National Stock Exchange (NSE)Projects Kart
A Project Report on National Stock Exchange (NSE). Money market is a market for debt securities that pay off in the short term usually less than one year, for example the market for 90-days treasury bills. This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc.
In other word we can also say that the Money Market is basically concerned with the issue and trading of securities with short term maturities or quasi-money instruments. The Instruments traded in the money-market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper (CPs), Bills of Exchange and other such instruments of short-term maturities (i.e. not exceeding 1 year with regard to the original maturity). Visit http://www.projectskart.com/p/contact-us.html for more information.
This document provide the information about primary Market:
Like
What is primary market?
Methods of Floating new issue.
Functions of NIM(New Issue Market).
Disadvantages of Primary Market.
Advantages of Primary Market.
Parties involved in the new issue.
An overview of capital & Commodities MarketRATHESH J
Financial markets & institutions have been created to facilitate transfer of funds from savers to spenders. Types of capital market- primary market & secondary market. commdities market and it difference between stock market
All related information about capital market instruments such as debt instruments, equity instruments, insurance instruments, hybrid instruments, swaps etc.
6. 1.Banks
1. From Banks Mr. Ace can approach
banks, but it will not prove to be a healthy
option because: -
Bank will charge him High rate of interest.
Lending of loans is a very tedious task.
Bank first scrutinizes the papers/
documents, verifies them.
Very time Consuming Process. Thus, this
idea is not an effective one.
8. Meaning of Capital Market
Capital Market is the part of financial
system which is concerned with raising
capital funds by dealing in Shares, Bonds,
and other long-term investments.
The market where Investment instruments
like bonds, equities and mortgages are
traded is known as the capital market.
9. The different types of financial
instruments that are traded in the
capital markets are
1. equity instruments
2. credit market instruments,
3. insurance instruments,
4. foreign exchange instruments,
5. hybrid instruments.
10. Role and Function of Capital Market
Capital Formation
Avenue Provision of Investment
Speed up Economic Growth and Development
Mobilization of Savings
Proper Regulation of Funds
Service Provision
Continuous Availability of Funds
11. Factors affect the Capital Market
• Economy of the Country
• Money Supply
• Interest Rate
• Corporate Results
• Global Capital Market Scenario
• Foreign Funds Inflow
• Strength/Weakness of the local currency
12. Classification of Capital Marketing
CAPITAL MARKET
PRIMARY MARKET
SECONDARY
MARKET
PUBLIC
ISSUE
RIGHT
ISSUE
BONUS
ISSUE
PRIVATE
PLACEMENT
STOCK MARKET
13. Primary Market
It is that market in which shares,
debentures and other securities are sold
for the first time for collecting long-term
capital.
This market is concerned with new
issues. Therefore, the primary market is
also called NEW ISSUE MARKET.
14. Features of Primary Market
It Is Related With New Issues
It Has No Particular Place
It Has Various Methods Of Float Capital: Following are the
methods of raising capital in the primary market:
i) Public Issue
ii) Offer For Sale
iii) Private Placement
iv) Right Issue
v) Electronic-Initial Public Offer
It comes before Secondary Market
15. Secondary Market
The secondary market is that market in which
the buying and selling of the previously issued
securities is done.
The transactions of the secondary market are
generally done through the medium of stock
exchange.
The chief purpose of the secondary market is to
create liquidity in securities.
16. Features of Secondary
Market
• It Creates Liquidity
• It Comes After Primary Market
• It Has A Particular Place
• It Encourages New Investments
17. Financial instruments dealt in
Secondary market
Equity Shares:
An equity share is commonly referred to as an ordinary share.
It is an form of fractional ownership in which a shareholder, as a
fractional owner, undertakes the entrepreneurial risk associated
with the business venture.
Holders of the equity shares are members of the company and have
voting rights.
Right shares:
This refers to the issue of new securities to the existing
shareholders, at a ratio to those shares already held.
Bonus Shares:
These shares are issued by the companies to their shareholders free
of cost by capitalization of accumulated reserves from the profit
earned in the earlier years.
18. Cont…
Preference shares:
These shareholder do not have voting rights.
Owners of these shares are entitled to a fixed dividend or a dividend
calculated at a fixed rate to be paid regularly before any dividend can
be paid in respect of equity shares.
These shareholders also enjoy priority over the equity shareholders in
the payment of surplus.
Cumulative Preference Shares:
This is a type of preference shares on which dividend accumulates if it
remains unpaid.
Cumulative Convertible Preference
Shares:
This is a type of preference shares on where the dividend payable on
the same accumulates, if not paid. After a specified date, these shares
will be converted into equity capital of the company.
