capital_market22__14

May 19th, 2015
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New issue market arranges for raising capital through floating of new issues by the corporate units in the form of shares and debentures. Secondary market segment or stock exchanges are engaged in trading. ie; buying and selling of existing securities.

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CAPITAL MARKETProf. Nijumon K John, ChristUniversity, Bangalore10/8/15Capital market deals in long term securitiesinclusive of both government securities andcorporate securities. It comprises of primary market or new issuemarket and secondary market.Prof. Nijumon K John, ChristUniversity, Bangalore10/8/15New issue market arranges for raisingcapital through floating of new issues by thecorporate units in the form of shares anddebentures. Secondary market segment or stockexchanges are engaged in trading. ie;buying and selling of existing securities.Prof. Nijumon K John, ChristUniversity, Bangalore10/8/15Functions of capitalmarketMobilise long term savings to finance longterm investments Provide risk capital in the form of equity tothe entrepreneurs Provide liquidity Lower the cost of transaction andinformation Improve the efficiency of capital allocationthrough various pricing mechanismProf. Nijumon K John, ChristUniversity, Bangalore10/8/15Enable quick valuation of financial instruments Provide insurance against market risk or pricerisk through derivative trading Provide operational efficiency throughsimplified transaction procedures, settlementtimings and lowering transaction costs. Develop integration among equity and debtinstruments, long term and short term funds,private and govt sectors, domestic andexternal funds etc.Prof. Nijumon K John, ChristUniversity, Bangalore

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