Equity Markets In India – An Overview1
EQUITY MARKETS IN INDIA - AN OVERVIEW
Equity Markets In India – An Overview2
INDEX
1.
Equity Market- Introduction32.
Developments In Equity Market53.
Equity As An Investment104.
Investing Principles115.
Primary Market286.
Methods Of Marketing In Primary Market297.
Intermediaries In Primary Market388.
Secondary Market419.
Reasons For Transiting In Secondary Market4510.
Functions Of The Secondary Market4611.
Listing4612.
Delisting5413.
Trading5514.
Intermediaries In Secondary Market6515.
SEBI (Securities & Exchange Board Of India)7016.
FIIs & Indian Equity Market7617.
2007 A Year To Remember8018.
Lessons From Recent Meltdown8219.
Conclusion8520.
Bibliography87
Equity Markets In India – An Overview3
EQUITY MARKET
In financial markets, stock is the capital raised by a corporation through theissuance and distribution of shares. A person or organization which holds shares of stocksis called a shareholder. The aggregate value of a corporation's issued shares is its marketcapitalization. When one buys a share of a company he becomes a shareholder in thatcompany. Shares are also known as Equities. Equities have the potential to increase invalue over time. It also provides the portfolio with the growth necessary to reach thelong-term investment goals. Research studies have proved that the equities have outperformed than most other forms of investments in the long term. Equities are consideredthe most challenging and the rewarding, when compared to other investment options.Research studies have proved that investments in some shares with a longertenure of investment have yielded far superior returns than any other investment.However, this does not mean all equity investments would guarantee similar high returns.Equities are high-risk investments. One needs to study them carefully before investing.Since 1990 till date, Indian stock market has returned about 17% to investors on anaverage in terms of increase in share prices or capital appreciation annually. Besides thaton average stocks have paid 1.5 % dividend annually. Dividend is a percentage of theface value of a share that a company returns to its shareholders from its annual profits.Compared to most other forms of investments, investing in equity shares offers thehighest rate of return, if invested over a longer duration.The first company to issue shares of stock was the Dutch East India Company, in1602. The innovation of joint ownership made a great deal of Europe's economic growthpossible following the Middle Ages. The technique of pooling capital to finance thebuilding of ships, for example, made the Netherlands a maritime superpower. Beforeadoption of the joint-stock corporation, an expensive venture such as the building of a
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Equity Markets
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| Upload Date: | 07/15/2009 |
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