Topic:

Capital Markets

By: Saurabh Kothari

 Capital Market
Long term borrowing needs are met, generally
for more than one year.
Funds are used for fixed capital requirements.
Major instruments traded are shares,
derivatives, debentures, etc.
Traded at a formal place like a stock
exchange.
Money Market
Caters to short term borrowing need,
generally for less than one year.
Funds are used for meeting working capital
requirement.
Major instruments traded are Treasury notes,
commercial bills, Certificate of deposit
Generally traded over a counter.
XYZ Company Public/ Secondary Market
Brokers
Initial Public Stock exchange is
Offering (IPO) When a person regulated and
sells his/her
protected by SEBI.
shares in
SEBI lists the
secondary market.
It is termed as company in share
Share Trading market depending
upon a lot of factors.
 Securities and Exchange Board
of India (SEBI)
➢ The Securities and Exchange Board of India
(SEBI) is the regulator for the securities market in
India owned by the Government of India.
It was given Statutory Powers on 30 January 1992
through the SEBI Act, 1992.

➢ Establishment Year – April 12, 1988

➢ Headquarter – Mumbai, Maharashtra

➢ The SEBI is managed by its members, which consists

of the following: The chairman is nominated by the
Union Government of India, Two members, i.e.,
Officers from the Union Finance Ministry, One
member from the Reserve Bank of India. The
remaining five members are nominated by the Union
Government of India
Stock Exchange Index Headquarters

BSE (oldest) Sensex Mumbai

NSE Nifty Mumbai

STOCK PRICES ARE DECREASING. STOCK PRICES ARE INCREASING.
(DOWNWARD TREND). (UPWARD TREND).
 Outstanding shares
are the shares that are Index is an indicator. It gives
held by all investors and a general idea about direction
not by the company of price movement in the
itself. stock market. In India mainly
there are two types of major
indices NIFTY AND SENSEX.

Market Capitalization is the total

market value of all the outstanding shares of a
company. For example – If Reliance has one
Crore shares outstanding and share price of
Rs. 50 than its market capitalization would be
Rs. 50 crores
 Day Trading is the practice of
Blue Chip Stocks are stocks of
buying and selling within the
companies that offer a stable
same trading day.
record of significant dividend
payments and have a reputation
of sound fiscal management. Dematerialization is The Dividend is
the process of selling the portion of
converting physical price is a company’s
Hedge is a risk The shares into an
management called earnings that
buying electronic form. OFFER. is paid back
strategy used in price is
limiting or to
called BID. Insider Trading is the trading of shareholders.
offsetting shares while having special
probability of loss knowledge or non-public
from fluctuations knowledge. Insider trading can be
in the prices of undertaken by company directors,
commodities. employees, brokers or even family
members.
Short Selling is the selling Portfolio is the collection
of shares without owning of investments owned by
them. an investor.
 THANK
YOU!

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