Securities Market

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► The securities market is the market for
equity debt and derivatives
► Except the derivatives market, each of
the above markets has two
components
► Primary Market
► Secondary Market
► New issues of securities take place in
the primary market like IPO and rights
issue
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► In the secondary market, transfer of
securities take place.
► There are 4 ways to raise equity
capital in the primary market :-
► 1.Public Issue
► 2. Rights issue
► 3.Private Placement
► 4.Preferential allotment
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► Terms associated with Securities Markets
► 1. Regulators
► 2.Stock Exchanges
► 3. Listed Securities
► 4.Depositories
► 5.Brokers
► 6.Foreign Institutional Investors
► 7.Merchant Bankers
► 8.Primary dealers
► 9.Mutual Funds
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► 9.Custodians
► 10.Share Transfer Agent
► 11. Underwriters
► 12 Bankers to an issue
► 13. Registrars to an issue
► 14. Lead Managers to an issue
► 15.Debenture Trustees
► 16 Venture Capital Funds
► 17 Credit rating in the case of debt securities
► 18. Book Building
► 19 Employees stock option scheme
► 20 StockInvest
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► Stock Market Quotations and Stock Market
Indices
► This information is available in the daily
newspapers as well as Economic Times and
Financial Express
► Individual Stock Quotations
► On a daily basis, two quotes are given
► 1. The BSE Quotation
► 2. The NSE Quotation in italics
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Co(Prev CL)Open High Low Market 52 week H/L
Close
P/E
Capitaliza
(vol val.(Rs’000, Trades) tion

Bajaj Auto (932.65) 937,

948,931,932.85 12.7 (9438.6) 1200/692)
[46436,43591.29,1384]

(932.80),940,949,931,933.20 12.7 (9438.6) 1200/692

[138630,130216.84,4404
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► Market Capitalization is the product of the
share price and the number of shares
outstanding
► Important abbreviations
► Con convertible
► Xd ex dividend
► Cd cum dividend
► Xr excluding right
► Sl small lot
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► Stock Market Indices
► The general movement of the market is
measured by indices representing the entire
market or segments thereof
► Price Weighted Index ; An index reflecting
the sum of the prices of the sample shares
during a period with reference to a base
year. The price weighted index assumes
that the investor buys one share of each
stock included in the index.
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► Equal Weighted Index
► An index reflecting the simple
arithmetic average of the price
relatives of sample shares in a certain
period with reference to a base year.
An equal weighted index assumes that
an investor invests an equal amount of
money in each stock included in the
index.
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► Value weighted index
► An index reflecting the aggregate market
capitalization of the sample shares during a
certain period in relation to a base year.
► A value weighted index assumes that the
investor allocates money across various
stocks included in the index in such a way
that the weights assigned to the various
stocks are proportional to their market
capitalization.