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WHERE CAN PEOPLE INVEST?

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Presentation on theme: "WHERE CAN PEOPLE INVEST?"— Presentation transcript:

1 WHERE CAN PEOPLE INVEST?
Bank (Saving) account. PPF (Public provident fund). Mutual Funds. Real Estate. Company Fixed Deposits. Capital Market.

2 WHERE CAN PEOPLE INVEST?
Bank (Saving) account. PPF (Public provident fund). Mutual Funds. Real Estate. Company Fixed Deposits. Capital Market.

3 WHY CAPITAL MARKET? FIXED DEPOSIT:- It will give us 7-8% of return to the higher end. Whereas, capital market gives you 20-25% of returns MUTUAL FUNDS:- You are giving your hard earned money to a fund manager to invest share market. Why not to learn and start investing your own money. If you learn about capital market you would get a detailed knowledge about economy of a particular country. EXTRA INCOME:-Source of second income.

4 CAPITAL MARKET CAPITAL MARKET PRIMARY MARKET IPO SECONDARY MARKET
EQUITY COMMODITY CURRENCY

5 PRIMARY MARKET When a company wants to be traded on share market, it has to enter into the primary market. It basically consists of IPO( initial public offering) through which the company aims to collect a capital required for its expansion.

6 When the Security Exchange Board of India (SEBI) approves the request of any firm to launch its IPO, the company and SEBI combinely decides the price band* of the share and also the lot size**. *the price range of a particular security. **Number of shares of a particular security.

7 For instance, the IPO of HDFC Standard Life was live on 7th nov 2017, its detailed information is as follows.

8 The minimum number of shares to be
purchased is 50 i.e there would be 50 shares in 1 lot.

9 FEATURES OF PRIMARY MARKET
It is related with new issues. It has no particular place. It has various methods of float capitals. Following are the methods of raising capital from the market: Public issue Offer for sale Private placement Right issue Online – Initial Public Offering It comes before secondary market.

10 SECONDARY MARKET Secondary market is the one where all the securities are traded. The NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange) provides the important platform for trading of stocks. There are about 5,000 listed companies on the BSE, while NSE has more than 1,600 companies listed on its platform, while there are many common stocks between the two exchanges.

11 Secondary market could be classified into three main segments they are as follows:
Equity Commodity Currency In the following slides we would be discussing about all the three segments of Secondary market.

12 EQUITY MARKET Equity market is further divided into two segments they are: Cash. Derivatives. Timing for this market is from 9:15 AM to 3:30 PM. In this one can trade There ate three sessions mainly: Premarket session : 9:00AM to 9:15AM Market session : 9:15AM to 3:30 PM Post market session: 3:30PM to 4:00PM

13 Cash Market: It is the one in which the trading is done purely in stocks. Securities are bought and sold. After buying a particular stock, the stock appears into our demat account. Two types of trading patterns are followed in cash market i.e Intraday and Delivery


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