25-08-2017, 09:32 PM
CAPITAL MARKETS
CAPITAL MARKETS.pptx (Size: 1.47 MB / Downloads: 34)
WHAT IS CAPITAL MKT?
A capital market is simply any market where a government or a company can raise money (capital) to fund their operations and long term investment.
Selling bonds and selling stock are two ways to generate capital, thus BOND MARKET and STOCK MARKET are considered capital markets.
Capital Market is characterized as the provider of long-term financing. The instruments used for this long-term financing are equity instruments, insurance instruments, derivative instruments and bonds.
PRIMARY MARKET
Primary Market also called the new issue market, is the market for issuing new securities.
Many companies, especially small and medium scale, enter the primary market to raise money from the public to expand their businesses.
What is Secondary Market?
The secondary market, also called aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.
Secondary mkt is also called as STOCK MARKET.
Governing Body
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992.
POWERS
Functions
De-Mat
De-Mat account is a safe and convenient means of holding securities just like a bank account is for funds.
Today, practically 99.9% settlement (of shares) takes place on demat mode only.
A maximum of 3 persons are allowed to open a joint demat account in their names.
Role of broker & sub broker in CAPITAL MARKET
A broker is a member of a recognized stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI.
A sub broker is a person who is registered with SEBI as such and is affiliated to a member of a recognized stock exchange
What kind of detail do I hav 2 provide in client registration form?
The brokers have to maintain a database of their clients, for which you have to fill client registration form. In case of individual client registration, you have to broadly provide following information:
Permanent Account Number (PAN), which has been made mandatory for all the investors participating in the securities market.
Your name, date of birth, photograph, address, educational qualifications, occupation, residential status(Resident Indian/ » NRI/others)
Bank and depository account details
If you are registered with any other broker, then the name of broker and concerned Stock exchange and Client Code Number.
Future Market
1 has to buy in large quantity
Unlimited losses and unlimited profit
Delivery doesn't take place
No dividend
Use by large trader
High risk
Eg. If I have the capacity to loss money and I have a proper news then I can buy more quantity by paying margin amount only.