Presented By:

Amit khare
 The capital market is the market for
securities, where companies and
governments can raise long term
funds. The capital market includes the
stock market and the bond market.
One of the oldest in Asia, its
history dates back to 200 years
ago..
East India Co. was the dominant
institution those days.
Then in 1874 brokers found a
street , now known as Dalal Street
for the transactions.
In 1887,they formally established
in Bombay, as “the Native Share
 The Bombay Stock Exchange was
established in 1875 with 6000
Indian cos listed.
 The Equity Market Capitalization
was US$1.79 trillion, making it
largest in South Asia and 10th in
World
 NSE is a Mumbai based stock exchange.
It is the largest stock exchange of India.
 NSE is mutually-owned by a set of
leading financial institutions .
 The Equity Market Capitalization was US$
1.46 trillion, making it second largest in
South Asia.
 It is also a fastest growing exchange with
a recorded growth of 16.6%
 The primary markets is where new stock
and bonds issues are sold (underwriting)
to investors
 Companies come up with initial public
issue to raise money directly to people
 Kept open for minimum three days and
maximum twenty one days
 Under written by financial institution
 Prospectus tell about the information like
 Status of company
 Performance
 Promoters
 capacity
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279.8
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295.8
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2177.2
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0 5000 10000 15000 20000 25000 30000 35000 40000 45000 5
 The promoter company should have three years
consistent record of profitable working
 The promoters take up at least fifty percent of
shares in issue
 All parties applying to the issue should be offered
the same instrument at the same term, specially
regarding the premium
 Prospectus discloses the material information,
which insure investors can take to intelligent
decision regarding investment
 Functions of IPO
1) Origination
2) Underwriting
3) Distribution
 Issue Mechanism:-
1) Public Issue through Prospectus
2) Offer for Sale
3) Private Placement
4) Initial Public Offers through Secondary Market
5) Right Issue
6) Bonus Share
 Instruments:-

1) Ownership Securities
a) Equity Shares
b) Preference Shares
c) Sweat Equity shares
 The secondary market is the financial
market where previously issued
securities and financial instruments such
as stocks, bonds, options and futures are
bought and sold
 Bear Market
 Bull Market
 Debenture
 Equity
 Giltz securities
 Derivatives
 Hedge funds
 Fccb
 DERIVATIVE
Derivative is a financial contract whose
value is derived from underlying
asset
 Future
 Forward
 Swap
 Option
In cash market
price of share(12 Jan)=280
(19 Jan)=330
profit=50/280*100=18%
In future market
price of share(12 Jan)=280
premium(20%)=56
price of share(19 Jan)=330
profit=50/56*100=89%
 Vyaj badla
broker buy=250
sell=252
Badla on tap
cash price=250
Future price quoting (on one month)=253
Difference=253-250=3
 UDHA BADLA

Short selling way to dealing in market

 Not much difference between future and
forward
 A smart portfolio to minimize your risk
Infosys share price=4000
future one month)=4060
you hedge your position for one month

Understand hedging not to earn profit its to

reduce risk
dollar against gold
 SECURED LOANS
 OBLIGATION OF INTEREST
 FOR A SHORT PERIOD
 Fully convertible debenture
 Partly convertible debenture
 Non-convertible debenture
 Call option
 Put option
 It give you a right to buy
you buy satyam call option at=240
premium=20
after(10days)=270
new premium =35
Now sell this call option
profit=15/20*100=75%
if you sell share( profit) =30/240*100=12.5%
 If satyam plummet to =200
loss in cash market=40
But in this case loss not more than=20
so it limit to value of your premium
so you have limited losses but your profit are
unlimited
But if you wait for expiry date what happen
assume price is =281
so your total profit will=(281-240)-
20=21
But If satyam goes to=239
You will lose your premium =20
 It give you the right to sell
suppose you buy put option to sell
satyam=260
premium=11
if satyam goes to=235
total profit=25-11=14
 These are the government security
offered
By central bank
 Adhoc
 ordinary
• Issued By Central Bank in 1937
• No fear of default, liquid asset
• Company corporate bodies, trust
and institutions can purchase
Treasury Bills
• Effective tolls for SLR
• Also being issue for MSS( Market
Stabilization Scheme)
 These bonds are subscribed by non
resident in foreign country
 Option of conversing in to share or gdr of
issuing company
 They have majority of five years
 They change according to pre decide
norms
 FIIs
 Mutual funds
 Financial institutes
 He should registered with SEBI
 Agents for buying and selling securities
 Thin line between a dealer and broker
 Work on commission
 Have good knowledge of market
 Tell the time of buying and selling
 Directly contacts the clients and execute
their order
 Not member of stock exchange
 SEBI, established in 1988 and became a
fully autonomous body by the year 1992
with defined responsibilities to cover both
development & regulation of the market
(SEBI) has been mandated to protect the
interests of investors in securities and to
promote the development of and to regulate
the securities market
 Conducted the work shop for reaching out
the new investor investor
 It control the mutual fund ,financial
institution and merchant bank
 Have power to give judgment
 Also stop inside trading
Thank You