Unit_2_Capital_Markets_40Slides_Part1.pptx

Capital Markets

1. Unit 2: Capital Markets B.Com Semester V – Stock Markets

2. Introduction to Capital Markets

3. What is Capital Market? A capital market is a place where individuals and institutions trade financial securities like stocks and bonds to raise long-term funds.

4. Functions of Capital Market - Mobilizes savings - Facilitates capital formation - Provides investment avenues - Ensures liquidity in investments - Aids in economic growth

5. Structure of Capital Market Capital market is divided into: 1. Primary Market 2. Secondary Market 3. Equity Market 4. Debt Market 5. Derivatives Market

6. Primary Market - Meaning Also known as the new issue market. Companies issue new securities to raise capital directly from investors.

7. Primary Market - Features - Securities issued for the first time - Direct investment from public - No trading, only issuance - Pricing methods: fixed & book building

8. Primary Market - Types of Issues 1. Public Issue 2. Rights Issue 3. Private Placement 4. Preferential Issue

9. Secondary Market - Meaning A platform where existing securities are traded between investors.

10. Secondary Market - Functions - Provides liquidity - Continuous market - Price discovery - Investor protection - Capital appreciation

11. Stock Exchanges in India Major stock exchanges: 1. Bombay Stock Exchange (BSE) 2. National Stock Exchange (NSE) 3. MCX (commodities)