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SECURITIES

 The shareholders are entitled for dividend.  Represent the ownership position in a company.  The holder of ordinary shares becomes the owner of the company to the extent he holds the proportion of shares.  Rate of dividend is not fixed and that is why ordinary share is also known as variable income security. .  The liability of shareholders is limited and they are residual claimants. which is not a legal boundation on the part of the company.EQUITY SHARES  Also known as ordinary shares.

 Right to control.  Variable income security.EQUITY SHARES.  Voting rights.  Limited Liability.Features  Residual claim on income and assets. .

Types  Growth Shares  Speculative Shares  Income Shares  Defensive Shares  Cyclic Shares .EQUITY SHARES.

EQUITY SHARES.Merits  High Returns  High Liquidity .

Demerits  High Risk  No Tax Benefits .EQUITY SHARES.

 The rate of interest is fixed and that is why a debenture is known as a fixed income security.  Debenture holders are creditors of the company. .  Debenture holders are entitled for interest. They are primary claimants.DEBENTURES  Debenture is a long term promisory note issued for raising debt capital. which is a legal boundation on the part of the company.

 Debenture holders are primary claimants.DEBENTURES.Features  Fixed income security. .  Definite maturity.

Partly Convertible  Non-Convertible .Types  Convertible .Fully Convertible .DEBENTURES.

DEBENTURES.Merits  Stable & Regular Income  Less Risk .

DEBENTURES.Demerits  Less Returns  Less liquidity .

and/or other securities. . including money market instruments .  Mutual fund means a fund established in the form of a trust to raise money through the sale of units to the public under one or more schemes for investing in securities .MUTUAL FUNDS  A mutual fund is a professionally managed firm of collective investments that collects money from many investors and puts it in stocks. short-term money market instruments. bonds.

In general.MUTUAL FUNDS. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. . These could range from shares to debentures to money market instruments. a mutual fund is a trust that pools the savings of a number of investors who share a common financial goal.Contd. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata).

Types Mutual Fund schemes can be classified on two basis:  On the basis of Structure  On the basis of Investment Objective .MUTUAL FUNDS.

On the Basis of Structure  Open-ended Funds  Closed-ended Funds .

Tax Saving Schemes (ELSS) .Index Funds etc. .On the Basis of Investment Objective  Growth Funds  Income Funds  Balanced Funds  Money Market Funds  Others .Sectoral Funds .

DERIVATIVES  Futures .Index  Options .Index (Call &Put) .Stock .Stock (Call & Put) .