FINANCIAL MANAGEMENT IN HEALTHCARE – Stock Markets 13 th Jan 2012 By Atul Kochhar

s Topics to be covered today  Understanding Stock Markets & terms used in context to Stock market  Obligations of Corporate (healthcare company) with respect to Stock markets  ERP Systems  Business models of existing hospitals working in India – Apollo v/s Fortis  Banks

Definitions EQUITY Ownership interest in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value. In real estate, it is the difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house) STOCK An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation's assets and profits. Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain type of company called a corporation has stock; other types of companies such as sole proprietorships and limited partnerships do not issue stock.

Definitions DERIVATIVE A derivative is an agreement or contract that is not based on a real, or true, exchange, i.e.: There is nothing tangible like money, or a product, that is being exchanged. For example, a person goes to the grocery store, exchanges a currency (money) for a commodity (say, an apple). The exchange is complete, both parties have something tangible. If the purchaser had called the store and asked for the apple to be held for one hour while the purchaser drives to the store, and the seller agrees, then a derivative has been created. The agreement (derivative) is derived from a proposed exchange (trade money for apple in one hour, not now). Futures Options

Definitions FUTURES A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. OPTIONS The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time. For stock options, the amount is usually 100 shares. Each option has a buyer, called the holder, and a seller, known as the writer. If the option contract is exercised, the writer is responsible for fulfilling the terms of the contract by delivering the shares to the appropriate party. In the case of a security that cannot be delivered such as an index, the contract is settled in cash. For the holder, the potential loss is limited to the price paid to acquire the option. When an option is not exercised, it expires. No shares change hands and the money spent to purchase the option is lost. For the buyer, the upside is unlimited.

General Gyaan on Stock Exchange  Statutory filing of quarterly accounts with Stock Exchange  Statutory filing of important communication with Stock Exchange IPO  Initial Public offer BSE  Bombay Stock Exchange NSE  National Stock Exchange FPO  Follow on Public offer Book Building  The process of determining the price at which an Initial Public Offering will be offered. The book is filled with the prices that investors indicate they are willing to Pay per share, and when the book is closed, the issue price is determined by an underwriter by analyzing these values Sensex / Nifty

Topics to be covered today  Understanding Stock Markets & terms used in context to Stock markets  Obligations of Corporate (healthcare company) with respect to Stock markets  ERP Systems  Business models of existing hospitals working in India – Apollo v/s Fortis  Banks

Topics to be covered today  Understanding Stock Markets & terms used in context to Stock markets  Obligations of Corporate (healthcare company) with respect to Stock markets  ERP Systems  Business models of existing hospitals working in India – Apollo v/s Fortis  Banks

Topics to be covered today  Understanding Stock Markets & terms used in context to Stock markets  Obligations of Corporate (healthcare company) with respect to Stock markets  ERP Systems  Business models of existing hospitals working in India – Apollo v/s Fortis  Banks & other topics

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