BUSINESS

ENVIRONMENT
PRESENTATION BY
P
BY

SAMIKSHA NAIK B-59

AMAN PATEL B-12
KARAN JOSHI B-21
VISHAL PATIL B-15
TUSHAR BHOIR B-26
SURAJ PANDEY B-6
DENIL SHAH B-30
INTRODUCTION
• What is a financial market ?
The financial market is a broad term describing any marketplace where
trading of securities including equities, bonds, currencies and
derivatives occur.
Types of financial market
1. Capital market
2. Money market
3. Derivatives market
4. Commodity market
Basic distinction between capital and
money market
History of Capital market
• The worlds first stock exchange was established in Antwerp, Belgium
in 1940.
• The BSE has been in existence since 1875. The NSE, on the other
hand, was founded in 1992 and started trading in 1994.
Constituents of Capital market
Types of Capital markets
 Primary market
Primary market is the segment of capital market with deals
with new securities.
Example
1. ipo(initial public offering)
2. fpo( follow on public issue)
 SECONDARY
MARKET
Secondary market is place where securities are
traded between investor after issue in public market.
1. spot market.
2. Future market.
 PRIMARY MARKET SECONDARY MARKET
MEANING Securities are issued for first time to Already issued securities are traded
investor by company between buyer an seller

COMPANY Directly involve in the transaction No involvement of company

DEALS WITH New securities Previously issued securities

FUNCTION Raise long term funds for company Provide continuous and ready market for
trading securities between investor

LISTING There is no listing requirement Only those securities are traded which
are listed in secondary market

GAIN Company investor

PRICE Determined by management Determined by demand and supply

SALE Stock is sold only once by company Stock traded between buyer and seller is
multiple time
Instruments of Capital market

Equity Instruments Hybrid instruments Debt Instruments

• Shares • Convertible bonds • Debentures
• Ipo • Preferred stocks • Treasury bills
• Mutual fund • Equity default swaps • Commercial papers
• Certificate of deposits
• Repurchase agreements
• Bankers acceptance
 Share’s
• A Share is the share in the share capital of the company
• Types of share
1. Ordinary shares
2. Preference Shares
3. Redeemable Shares
4. Non Voting Shares
INDICES
• Large Cap Equity Funds
• Mid-Cap Equity Funds
• Small Cap Equity Funds
Large cap funds are those funds which invest a larger proportion of their
corpus in companies with large market capitalization. Trustworthy,
reputable and strong are three adjectives that are often used to describe
a large-cap company.
Mid-cap segment is defined by contains the stocks that are ranked from 101 to
250 by market capitalization. The value of the 100th ranked stock in terms of
market capitalization is worth INR 30,0000 crores.
Small Cap Stock. The “cap” in small cap stocks refers to a company's
capitalization as determined by the total market value of its publicly traded
shares. Small cap stocks are generally defined as the stock of publicly traded
companies that have a market capitalization ranging from $300 million to
about $2 billion.
Categories of share
• A group
• B group
• Z group
• T group
Listing of companies.
IPO process
Intermediaries
An investor is any person or other entity (such as a firm or mutual
fund) who commits capital with the expectation of receiving
financial returns. Investors utilize investments in order to grow
their money and/or provide an income during retirement, such as
with an annuity.
Stock brokers
A stockbroker or share broker is a regulated professional individual, usually associated with a brokerage firm or broker-
dealer, who buys and sells stocks and other securities for both retail and institutional clients through a stock exchange or
over the counter in return for a fee or commission.
Depositories
• NSDL
• CDSL
Regulatory
• SEBI: The Securities and Exchange Board of India (SEBI) is the
regulator for the securities market in India. It was established in 1988
and given statutory powers on 30 January 1992 through the SEBI Act,
1992.
What is an Issuer
An issuer is a legal entity that develops, registers and sells securities to finance its operations. Issuers
may be corporations, investment trusts, or domestic or foreign governments. Issuers are legally
responsible for the obligations of the issue and for reporting financial conditions, material
developments and any other operational activities as required by the regulations of their
jurisdictions.
Stock Exchanges
• NSE :National stock Exchange was founded by R. H. Patil
• NIFTY 50
• BSE : Bombay stock Exchange was founded by Premchand Roychand
• SENSEX 30
Players
Effect of Capital markets
• Effect on Indian Economy • Effect on Individual

• Effect on individual.
• Script
• Script code
• Hold
• Release
• Order type
• Order book / Trade book
• Disclosed quantity
• Shortfall message
• Brokers reference number
Bull vs bear market :
A bull market is the condition of a financial market of a group of securities in which prices
are rising or are expected to rise. The term "bull market" is most often used to refer to
the stock market but can be applied to anything that is traded, such as bonds, real estate,
currencies and commodities. 
• Delivery –based
• Intraday
• Emargin
• Cover
• Encash
Order types in stock trading
Validity of stocking trading
Circuit levels / price band

• Upper circuit
• Lower circuit