The document discusses equity markets, stock exchanges, and money markets. It provides details on: 1) What equity markets and stock exchanges are, including that they allow for public trading of company stock. 2) The main participants in equity markets, including individual and institutional investors such as mutual funds and corporations. 3) Key money market instruments like treasury bills, certificates of deposit, and repurchase agreements that facilitate short-term borrowing and lending. 4) Major participants in the money market, including banks, corporations, money market funds, and central banks.

1. Presented by
Mangesh Naik
Roll No. 12

2.  A Equity market or Stock market is a public
entity for the trading of company stock (shares)
and derivatives at an agreed price; these
are securities listed on a stock exchange.
 The stocks are listed and traded on stock
exchanges which are entities of a
corporation specialized in the business of
bringing buyers and sellers of the organizations
to a listing of stocks and securities together.

3.  Market participants include individual retail
investors, institutional investors such as mutual
funds, banks, insurance companies and hedge
funds, and also publicly traded corporations
trading in their own shares.
 Some studies have suggested that institutional
investors and corporations trading in their own
shares generally receive higher risk-adjusted
returns than retail investors.
 A few decades ago, worldwide, buyers and
sellers were individual investors, such as wealthy
businessmen, usually with long family histories
to particular corporations.

4. CONTINUED:
 The rise of the institutional investor has
brought with it some improvements in
market operations.
 Over time, markets have become more
"institutionalized"; buyers and sellers are
largely institutions (e.g., pension
funds, insurance companies, mutual
funds, index funds, exchange-traded
funds, hedge funds, investor groups, banks
and various other financial institutions).

5.  There has been a gradual tendency for "fixed" (and
exorbitant) fees being reduced for all investors, partly
from falling administration costs but also assisted by
large institutions challenging brokers' oligopolistic
approach to setting standardised fees.

6.  Stock Exchange in India are : National Stock
Exchange (NSE), Bombay Stock Exchange.
 Bombay Stock Exchange is the 10th largest stock
exchange in the world by market capitalization,
Established in 1875, is Asia’s first Stock Exchange.
 BSE’s popular equity index is BSE SENSEX
 The NSE's key index is the NIFTY

7.  The Equity Market is one of the most
important sources for companies to raise
money. This allows businesses to be publicly
traded, or raise additional financial capital for
expansion.
 The Equity Market is often considered the
primary indicator of a country's economic
strength and development as it indicates social
mood of the economy.

8. •As money became a commodity, the money market became a component of
the financial markets for assets involved in short-term borrowing, lending,
buying and selling with original maturities of one year or less.
•Trading in the money markets is done over the counter, is wholesale.
•Various instruments exist, such as Treasury bills, commercial paper, bankers'
acceptances, deposits, certificates of deposit, bills of exchange, repurchase
agreements, federal funds, and short-lived mortgage-, and asset-backed
securities.
• It provides liquidity funding for the global financial system

9.  Transfer of large sums of money
 Transfer from parties
with surplus funds to
parties with a deficit
 Allow governments to raise funds
 Help to implement monetary policy
 Determine short-term interest rates

10. Participants of
Money Market
•The money market consists of financial institutions and dealers in
money or credit who wish to either borrow or lend. Participants borrow
and lend for short periods of time, typically up to thirteen months.
•Money market trades in short-term financial instruments commonly
called "paper." This contrasts with the capital market for longer-term
funding, which is supplied by bonds and equity.
•The core of the money market consists of interbank lending--banks
borrowing and lending to each other using commercial paper, repurchase
agreements and similar instruments.
• These instruments are often benchmarked to (i.e. priced by reference
to) the London Interbank Offered Rate (LIBOR) for the appropriate term
and currency

11. Participants of Money Market
• Certain large corporations with strong credit ratings, such
as General Electric, issue commercial paper on their own credit.
Other large corporations arrange for banks to issue commercial
paper on their behalf via commercial paper lines.
•Trading companies often purchase bankers' acceptances to be
tendered for payment to overseas suppliers.
•Retail and institutional money market funds
•Banks
•Central banks
•Cash management programs
•Merchant Banks

12.  Certificate of deposit - Time deposit, commonly
offered to consumers by banks, thrift institutions, and
credit unions.
 Repurchase agreements - Short-term loans—normally
for less than two weeks and frequently for one day—
arranged by selling securities to an investor with
agreement to repurchase them at a fixed price on a fixed
date.
 Commercial paper - short term usanse promissory
notes issued by company at discount to face value and
redeemed at face value

13. CONTINUED
 Treasury bills - Short-term debt obligations of a
national government that are issued to mature in
three to twelve months.
 Money funds - Pooled short maturity, high quality
investments which buy money market securities on
behalf of retail or institutional investors.
 Foreign Exchange Swaps - Exchanging a set of
currencies in spot date and the reversal of the
exchange of currencies at a predetermined time in
the future.

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15. Call Market in India
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16. Call Market in India
• The interest rate paid on call money loans, known as the
call rate, is highly volatile.
• It is the most sensitive section of the money market and the
changes in the demand for and supply of call loans are
promptly reflected in call rates. There are now two call rates
in India: the Inter bank call rate and the lending rate of
DFHI.
•The ceilings on the call rate and inter-bank term money rate
were dropped, with effect from May 1, 1989.
• The Indian call money market has been transformed into a
pure inter-bank market during 2006–07. The major call
money markets are in Mumbai, Kolkata, Delhi, Chennai.

17.  Call markets are helpful in illiquid markets or
markets where there are few buyers, sellers,
and shares to trade.
 As such, the buyers and sellers in a call market do
not have the final say on what the final price is in
their trades.
 This differs from an auction market, whereby the
final price is more directly determined
by market forces.

18. THANK YOU