Capital_Market_Overview.pptx (Securoity analysis & portfolio management)

This presentation introduces the capital market, covering primary and secondary markets, stock exchange functioning, trading of securities, regulatory framework, investor types, and approaches to security analysis. It provides conceptual clarity and practical insights into security analysis and portfolio management.

1. Overview of Capital Market Security Analysis & Portfolio Management

2. Capital Market: Meaning Market for long-term funds (maturity > 1 year). Platform for raising & investing funds via equity, bonds, debentures. Two main segments: Primary Market (New Issues) & Secondary Market (Stock Exchange).

3. New Issue Market (Primary Market) • Companies raise funds via IPO, FPO, Rights Issue, Private Placement. • Direct mobilization of long-term funds. • Limitations: high cost, information asymmetry, under-subscription risk.

4. Stock Exchange (Secondary Market) • Organized marketplace for trading existing securities. • Provides liquidity, price discovery, transparency. • Limitations: volatility, insider trading, dependence on SEBI.

5. Trading of Securities • Instruments: Equity shares, Bonds, Debentures. • Order Types: Market, Limit, Stop-loss, IOC. • Margin Trading: borrow from broker, high risk-reward. • Clearing & Settlement: T+1 cycle in India via NSDL/CDSL.

6. Regulatory Systems • SEBI: main regulator, ensures fair trading & investor protection. • RBI: regulates monetary policy & govt securities. • NSDL & CDSL: maintain dematerialized securities.

7. Types of Investors • Retail Investors (individuals). • Institutional Investors (MFs, Insurance, Banks). • FIIs & DIIs. • HNI/UHNI investors.

8. Aim & Approaches of Security Analysis Aim: Evaluate risk-return, intrinsic value, informed decision-making. Approaches: • Fundamental Analysis: financials, industry, economy. • Technical Analysis: charts, trends, trading patterns. • Efficient Market Hypothesis (EMH).