Types of market

YOGESH NAMDEO INGLE.MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

1

Financial markets meet various needs of different entities:

Government Issuing companies Investors Economy

Capital Market


2

Introduction To Capital Market

Equity capital Debt capitalPreference Capital

Capital Market


3

CAPITAL MARKET SEGMENTS

Primary MarketSecondary Market

Capital Market


4

PRIMARY MARKET

Channel for sale of new securities. Issuance is done either through

public issues or private placement. When a company makes a public

issue of its equity shares for the first time, it is called an initial public offer (IPO). Subsequent issues are follow-on public offers (FPO).

Capital Market


5

SECONDARY MARKET

Securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange.

Capital Market


6

MONEY MARKET

Debt, which is repayable within a short time period of 1 year, is called money market.

The inter-bank money market for very short tenors of 1 to 3 days is called call money market.

Slightly longer money market for tenors of 4 to 15 days is called notice money market.

Capital Market


7

Treasury Bills RBI issues T-Bills for three different

maturities: 91 days, 182 days and 364 days.

Secondary market.

Certificate of Deposit (CD) Unsecured debt securities Issued by banks (Up to 1 year

maturity) or financial institutions (1 to 3 years maturity).

Capital Market


8

Commercial Paper (CP) Companies and financial institutions

issue these unsecured debt securities.

For 1-day to 270 days maturity.

Capital Market


9

Derivatives

Derivative is a contract that derives its value from the value of an underlying.

ForwardsFuturesOptionsSwaps

Capital Market


10

Help yourself

Adv fin

Capital Market


11Capital Market

Economy & Finance

Types of market