Professional Documents
Culture Documents
• Financial Markets
FINANCIAL MARKET
• Debt
• Contract
• One Party lends to another Party
• Predetermined
• Interest Rates and Term
• Participants
• Banks
• Financial Institutions
• Mutual Funds
• Insurance Companies etc.
• Instruments
• Government Securities (G-Secs)
• Public Sector Units Bonds
• Corporate Securities
Foreign Exchange Market
• Foreign Goods
• Payments in Foreign Currency
• Forex Market
• Participants
• Government
• Payments for Imports
• Repayment of Loans
• Importers
• Exchange Rates – One Currency in terms of
other (Eg. 1 US Dollar = 45 Rupees)
• Bid Rate
• Offer Rate
Capital Market
• Primary Market
• Instruments issued for first time
• Used by
• Government/Corporates/PSU’s
• IPO
• Initial Public Offering
• Secondary Market
• Trading of already issued
• Stocks
• Bonds
• Stock Exchange
Investment Basics
• Physical Assets
• Real Estate ,Gold/jewellery
• Requires huge capital
• Financial Assets
• Savings Bank Account
• Fixed Deposits
• Post office
• Government Bonds
• Provident Funds
But ..
All these are fixed return instruments
• Stock
• Capital raised by corporations
• Through issue and distribution of shares
• Share
• Signifies ownership in the company
• A company might have thousands of
Shareholders
• Which company issued shares for the
first time in the world???
• The Dutch East India Company in 1602
Stock Exchange
• Types of Shares
• Common/Equity
• Preferred
• Face Value
• Market Value
• Market Capitalization
• Dividend
A few more Jargons!!!
• Stock Broker
• Mutual Funds
• Annual Report
• Prospectus
• Liquidity
Regulatory Environment in India
• Pre 1991
• Tight Control of Government
• Post 1991
• Liberalization
• Opening of the Economy
• Need for Supervision
• Regulation
• Regulatory Bodies
Regulatory Environment in India
Hmm….
• Stay tuned to BIZ 101 Lecture Series
• www.wikipedia.org
• www.rbi.org.in
• www.sebi.gov.in
• www.nseindia.com
• www.bseindia.com
• www.moneycontrol.com
• And, !!!
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