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Contents
Financial Markets Shares and Stocks Regulatory Environment in India
SEBI RBI
Financial Markets
A Market is a place where buyers and sellers come together to exchange something Financial Markets are where financial Instruments/products are exchanged. A Financial Market is known by type of product traded in it
Money Market
Forex Market
Capital Market
Money Market
Markets for short term
Borrowing Lending
Debt 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
Participants
Government
Payments for Imports Repayment of Loans
Importers
Capital Market
Long Term Funds Raised by
Government Corporates
Financial Markets
Primary Market
Instruments issued for first time Used by
Government/Corporates/PSUs
IPO
Initial Public Offering
Secondary Market
Trading of already issued
Stocks Bonds
Stock Exchange
Investment Basics
Using savings to get returns in future is known as Investment Why should I invest??
I want to earn return on my idle money A good bank balance before I retire I intend to own a Mansion and Ferrari
Where to invest???
Physical Assets
Real Estate ,Gold/jewellery Requires huge capital
Financial Assets
Savings Bank Account Fixed Deposits Post office Government Bonds Provident Funds
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
Place where the shares are traded
BSE NSE
A Few Jargons!!!
Types of Shares
Common/Equity Preferred
Market Capitalization
Dividend
Prospectus
Liquidity
Post 1991
Liberalization Opening of the Economy Need for Supervision
Regulation
Regulatory Bodies
Thank you !!