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Capital Market:

What Does Capital Markets Mean? A market in which individuals and institutions trade financial securities. Organizations/institutions in the public and private sectors also often sell securities on the capital markets in order to raise funds. Thus, this type of market is composed of both the primary and secondary markets.

Classification Primary market Secondary market


What Does Primary Market Mean? A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors. What Does Secondary Market Mean? A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than to the underlying company/entity directly.

-IPOs - Initial Public Offering - IPO Mean? The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), the best offering price and the time to bring it to market. Also referred to as a "public offering". -NSE - National Stock Exchange Of India Limited - NSE Mean?
The National Stock Exchange is India's largest financial market. Established in 1992, the NSE has developed into a sophisticated, electronic market, which ranks third in the world for transacted volume. The NSE conducts transactions in the wholesale debt, equity and derivative markets.

BSE - Bombay Stock Exchange (BSE) .BO Mean?


The first and largest securities market in India, the Bombay Stock Exchange (BSE) was established in 1875 as the Native Share and Stock Brokers' Association. Based in Mumbai, India, the BSE lists over 6,000 companies and is one of the largest exchanges in the world. The BSE has helped develop the country's capital markets, including the retail debt market, and helped grow the Indian corporate sector.

Sensex - Sensex Mean?


An abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India. -What is SEBI? What is the main role of SEBI? Securities and Exchange Board of India (SEBI) A body set up in response to the provision of the Security and Exchange Board of India Act of 1992 with the aim of protecting the interest of investors, promoting the development of investments in securities, and controlling the security market. SEBI became a statutory body in 2005 upon changes made to the original act.

What are depositories?


A bank or company which holds funds or securities deposited by others, and where exchanges of these securities take place.

Mutual Funds: - What are Mutual Funds- Advantages- Which companies come under that?
An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund. Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment. A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust. There are many types of mutual funds, including aggressive growth fund, asset allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund, growth and income fund, hedge fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.

- Types of shares- Advantages & importance


What Does Shares Mean? A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.

What Does Preference Shares Mean? Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a company bankruptcy, preferred stock shareholders have a right to be paid company assets first. Preference shares typically pay a fixed dividend, whereas common stocks do not. And unlike common shareholders, preference share shareholders usually do not have voting rights. Also referred to as preferred stock.

Equity Shares: EQUITY SHARE is a share or class of shares whether or not the share carries voting rights, b. any warrants, options or rights entitling their holders to purchase or acquire the shares referred to under (a), or c. other prescribed securities. An equity share is a perpetual liability because it signifies an owners legal demand upon the assets of the entity in which the equity share if held.
What Does Debenture Mean? A type of debt instrument that is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Like other types of bonds, debentures are documented in an indenture.

- What is NAV and how is it calculated?


What Does Net Asset Value - NAV Mean? A mutual fund's price per share or exchange-traded fund's (ETF) per-share value. In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding.

What Does Derivative Mean? A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.

- What is difference between Shares & Debentures?


The following are the main difference between a debenture and a share:

A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. Debenture holder is a creditor of the company and cannot take part in the management of the company while a shareholder is the owner of the company. It is the basic distinction between a debenture and a share. Debenture holders will get interest on debentures and will be paid in all circumstances, whether there is profit or loss will not affect the payment of interest on debentures. Shareholder will get a portion of the profits called dividend which is dependent on the profits of the company. It can be declared by the directors of the company out of profits only. Shares cannot be converted into debentures whereas debentures can be converted into shares. Debentures will get priority is getting the money back as compared to shareholder in case of liquidation of a company. There are no restriction on issue of debentures at a discount, whereas shares at discount can be issued only after observing certain legal formalities. Convertible debentures which can be converted into shares at the option of debenture holder can be issued whereas shares convertible into debentures cannot be issued. There can be mortgage debentures i.e. assets of the company can be mortgaged in favor of debenture holders. But there can be no mortgage shares. Assets of the company cannot be mortgaged in favor of shareholders.

Custodian Bank : Importance of Custodian Bank:


A bank that holds and manages a client's securities or other assets on his/her behalf. For example, the bank may hold stock certificates for the client. This reduces the risk of the client losing his/her assets or having them stolen. A custodian bank provides an investor a place to store assets with little risk. Custodian banks normally charge a fee for their services
What Does Contingent Liability Mean? 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal.

MS- Excel- shortcut keys of MS-Excel Shortcut Keys Description F2 F5 F7 F11 Ctrl + Shift + ; Ctrl + ; Alt + Shift + F1 Shift + F3 Shift + F5 Ctrl + A Ctrl + B Ctrl + I Ctrl + K Ctrl + U Ctrl + 5 Ctrl + P Ctrl + Z Ctrl + F9 Ctrl + F10 Ctrl + F6 Ctrl + Page up Ctrl + Page down Ctrl + Tab Alt + = Ctrl + ' Ctrl + Shift + ! Ctrl + Shift + $ Ctrl + Shift + # Ctrl + Shift + % Ctrl + Shift + ^ Ctrl + Shift + @ Ctrl + Arrow key Ctrl + Space Shift + Space Edit the selected cell. Go to a specific cell. For example, C6. Spell check selected text or document. Create chart. Enter the current time. Enter the current date. Insert New Worksheet. Open the Excel formula window. Bring up search box. Select all contents of the worksheet. Bold highlighted selection Italic highlighted selection Insert link Underline highlighted selection. Strikethrough highlighted selection. Bring up the print dialog box to begin printing. Undo last action. Minimize current window. Maximize currently selected window. Switch between open workbooks / windows. Move between Excel work sheets in the same Excel document. Move between Excel work sheets in the same Excel document. Move between Two or more open Excel files. Create a formula to sum all of the above cells Insert the value of the above cell into cell currently selected. Format number in comma format. Format number in currency format. Format number in date format. Format number in percentage format. Format number in scientific format. Format number in time format. Move to next section of text. Select entire column. Select entire row.

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