Intermediary Market Role Stock Exchange pital Market eecondary Market to Investment Bankers pital Market, Crecit Market | rorb0 ete advisory services, Inderwriters pital Market, Money Market rior Be Relea issue securities to the ustedians: mpany and handle share ransfer activity egistrars, Depositories, basics! Markee fewer on benaif of the rimary Dealers Satellite arket making in government Ee ney eke am - insure exchange ink forex Dealers forex Market Fase aaa a SYMPHONY _ Indian Financial system Financial institutions © NSDL ——— Technology, Trust & Reach Financial instruments Financial services— Primary vs. secondary security sales > Primary + New issue + Key factor: issuer receives the proceeds from the sale. » Secondary + Existing owner sells to another party. + Issuing firm doesn't receive proceeds and is not directly involved. Ce) ety ioe cores ee Repurchase pera’ (an eee Ie SWIPES UP. (A Sues Down WHEN WHEN ATTAGING eon BULL” BEAR MARKET MARKET * OPTIMISM + PESSIMISM + PRICESCOING * PRICES GINaDOWN vp 2 2 4transaction ees Agreement oe 5 make shares >, ai = Smonth Zeontracks Soe E underlying yy gpastually, 8"! £ option? S€curitiesa® B Rereed derivatives designated, ES"contract ontagllers class stock 2 differs wor stockgoptions stocks bans futures stoch {ots ptionsCapital market Secondary Secondary Primary market pean Primary market rae Publicissue Private equit Publicisue a : : a : . Private equity isting lolistins ti isting compulsory IPO h compulsory MeeSEHen Basis Capital market ‘Money market Participants Individual Investors as well as ‘The participants are RB), Commercial Banks insttutiona investors ke financial financial institutions, mutal funds and corporate institutions banks, corporate houses and houses. Individual investors do not participate in foreign investors partcpate in the capital money-market. market transactions, Instruments The Instruments of capital market include Some of the main instruments used in ‘traded equity shares, preference shares, bonds, _money-mnarket are commercial paper, treasury bil debentures, ete. trade bills certificate of deposi, etc Duration of | The capital market deals in medium and Money-market deals in short-term securities having securities long-term securities which are for more _a maximum tenure of one year traded than one year, Expected Higher returns on investment “There is always a trade off between risk and return, return Low risk involved leads to lesser returns safety Capital market is more risky. The instruments of money-markets are safe, less Fisky due to short duration and soundness of issuers.txpnsagtion computerize ‘trading be stock. oe an eRarsone OL, ge oma curity, INANGIAL, Bp, aiieeay “ue, oi oe capital market MONE system wlarge, He parketes. NERY unde estar otregenem Sat ienant Y. des ee Z cen hE FAGMARieRates BLS more ‘ ‘MATIREDER T oo Se QISTRUMENT AMEE EOS eh oe Dp, MONEY. DATE ecole ae A TENDERED’ The higher the risk — the higher the return Risk Share instalments Equities Unit tusts/ ETFs Bonds Cash ReturnBrirurat Sf inanctal