capital_market012

May 19th, 2015
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Organized market is classified into two Capital market Money market Capital market is a market for financial assets which has a long or indefinite maturity i.e. a maturity period of more than 1 year.

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CAPITAL MARKETPresented by:LeelaManish BansalMegha VermaNeha MahnaNeha ModiINTRODUCTIONOrganized market is classified into twoCapital marketMoney marketCapital market is a market for financial assetswhich has a long or indefinite maturity i.e. amaturity period of more than 1 year.IMPORTANCE OF CAPITAL MARKETMobilize saving of people and avoids wastagein unproductive uses.The operations of different institutions incapital market induces economic growth.A healthy capital market promotes stability invalues of securities.It facilitates increase in production andproductivity in the economy.STRUCTURESECONDARYPUBLIC MARKETSTOCKISSUEMARKETPRIMARY MARKETThis is the market for new long term capital. The primarymarket is the market where the securities are sold for thefirst time. Therefore it is also called New Issue Market(NIM).In a primary issue, the securities are issued by thecompany directly to investors.The company receives the money and issues newsecurity certificates to the investors.Primary issues are used by companies for the purpose ofsetting up new business or for expanding or modernizingthe existing business.TYPE OF ISSUE IN PRIMARYMARKETPUBLIC ISSUE :It involves raising of funds directly from the public and getthemselves listed on the stock exchange in case of new companies ,the face value of the securitiesis issue at par, and in the case of existing companies, the face value of

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