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NISM 2021.pptx
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- 15. 1 Understanding SecuritiesMarket & Performance 2 Securities, Types, Features & Concepts 3 Primary Market 4 Secondary Market 5 Mutual Funds 6 Derivatives Market 7 Financial Planning, Securities Market
- 16. Some Finance Jargons ELSSNAV IPO EPO PBV SEBI CDs ETFs
- 33. Chapter 1 Chapter 3Chapter 4 Chapter 2
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- 46. What is the Value ofthe Letter
- 47. In pure financial language,this letter will be called a ‘derivative instrument’. A ‘derivative instrument’ is nothing but a contract (in this case –the letter) whose value is derived from the value of the underlying asset (in this case –The concert ticket
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- 49. • A securityrepresents the terms of exchange of money between two parties. Securities are issued by companies, financial institutions or the government and are purchased by investors who have the money to invest.
- 50. • Security issuanceallows borrowers to raise money at a reasonable cost while security ownership allows investors to convert their savings into financial assets which provide a return. • Thus, the objectives of the issuer and the investor are complementary, and the securities market provides a platform to mutually satisfy their goals.
- 51. • The businessenterprises issue securities to raise money from the entity with surplus funds through a regulated contract. • The enterprise list these securities on a stock exchange to ensure that the security is liquid (can be sold when needed) and provides information about its activities and financial performance to the investing entity.
- 52. • The issuerof the security provides the terms on which the capital is being raised. • The investor in the security has a claim to the rights represented by the securities. These rights may involve • ownership, • participation in management or • claims on assets.
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- 55. •Return refers tothe benefits that the investor will receive from investing in the security •Risk refers to the possibility that the expected returns may not materialise
- 63. • An investorhas the right to seek information about the securities in which he invests Those who need money can source it from those who have it primarily through two means: Source A one-to-one transaction, whose terms are determined and agreed to mutually A standard security, whose terms are accepted by both parties
- 64. Securities Markets: Structureand Participants Market Primary Secondary
- 65. Securities Markets: Structureand Participants Participants Investors issuers Financial intermediaries
- 66. Primary Market • Merchantbankers • Mutual funds • Financial institutions • Foreign portfolio investors (FPIs) • Individual investors
- 67. Secondary Market • Stockexchanges • Stock brokers • Asset management companies (AMC) • FPI • Depository Participants • Bank • Investment Companies
- 68. Financial intermediaries • Registrarsand Transfer Agents (RTAs) • Custodians and Depositories are capital market intermediaries
- 69. Securities Markets: Structureand Participants Investors Individuals Organizations
- 70. Retail Investors VsInstitutional Investor
- 71. Issuers • Companies • Centraland State Governments • Local governments and municipalities • Financial institutions and Banks • Public Sector Companies • Mutual Funds
- 72. Intermediaries • Asset ManagementCompanies • Portfolio managers • Merchant bankers • Underwriters • Stockbrokers • Authorized Persons • Clearing members of a clearing corporation or house • Trading members of the derivative segment of a stock exchange • Bankers to an issue • Registrars of an issue • Share transfer agents • Depository participants • Custodians of securities • Trustees of trust deeds • Credit rating agencies • Investment advisers
- 73. Regulators of SecuritiesMarkets •Securities and Exchange Board of India (SEBI) •The Reserve Bank of India (RBI) •Ministry of Corporate Affairs (MCA) •Ministry of Finance (MoF)
- 74. Role of SecuritiesMarkets as Allocator of Capital • Orderly channel for transfer of funds • Generate productive investments • Liquidity • Information signaling through prices
Editor's Notes
- #71 For instance, if A saves Rs. 5000 from her salary every month and uses it to buy mutual fund units, she is a retail investor, whereas an institution like ICICI Mutual Fund which buys 50,000 shares of Reliance Industries Ltd., is an institutional investor.