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Primary and Secondary Market

Date post: 23-Jan-2015
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SECURITY ANALYSIS & PORTFOLIO MANAGEMENT CLASS THREE Presented by, Kaushal Mandalia [email protected] S M LEARNING Made Simple Primary Market Secondary Market Equity Market – Current Overview
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  • 1. SECURITY ANALYSIS & PORTFOLIO MANAGEMENT CLASS THREE Primary Market Secondary Market Equity Market Current Overview Presented by,Kaushal MandaliaM LEARNING [email protected] S Made Simple

2. STOCK WARRANT Warrant is a Security that entitles theholder to buy stock of the company thatVisit www.finance-sapm.blogspot.comissued it at a specified price, which is usuallyhigher than the stock price at time of issue. Warrants are frequently attached to bonds orpreferred stock as a sweetener, allowing theissuer to pay lower interest rates ordividends.MLEARNING S Made Simple 3. S TRUCTURE AND F EATURE Exercising: When the holder informs the issuer their intention to purchase the shares underlying the warrantVisit www.finance-sapm.blogspot.com Premium: How much extra you have to pay for your shares Expiration Date: This is the date the warrant expires. The expiry date is the date on which the right to exercise no longer exists. Restrictions on exercise: Like options, there are different exercise types associated with warrants such as American style (holder can exercise anytime before expiration) or European style (holder can only exercise on expiration date)MLEARNING S Made Simple 4. P RIMARY M ARKET - IPOVisit www.finance-sapm.blogspot.comNHPCIssue Price / Floor Price : 30 36Application per share : 30Min Investment Amt : 5250Min Bid : 175 in multiple of 175 sharesMax Shares (Retail) : 3325 2625Listing on : BSE / NSETotal Shares Offered : 16773.74Lead Manager : Enam / KMCCRegistrar : KarvyMLEARNING S Made Simple 5. STOCK PRICE MOVEMENT..High Close Visit www.finance-sapm.blogspot.comOpenLow MLEARNINGS Made Simple 6. EXAMPLE : RELIANCE INDUSTRIESVisit www.finance-sapm.blogspot.comMLEARNING S Made Simple 7. PRIMARY MARKET Objective : To raise FundsVisit www.finance-sapm.blogspot.com Why? To promote New Company To expand existing company To diversify the production To meet W/C Requirement To capitalize ReservesMLEARNING S Made Simple 8. PARTIES INVOLVED Managers Drafting prospects, Preparing Budget, SuggestTimings, Assisting in Marketing, Appointment of Visit www.finance-sapm.blogspot.comRegistrars, Directing agencies Registrars Recommend Allotment Underwriters Underwriters subscribe to the securities in the eventof non subscription Bankers Advertising Agents Financial InstitutionsM LEARNING SMade Simple 9. PLACEMENT OF ISSUE Through prospectus Bought out deals / offer for saleVisit www.finance-sapm.blogspot.com Private placement Right issues Book buildingMLEARNING S Made Simple 10. PRICING At premium Visit www.finance-sapm.blogspot.com At par value MLEARNINGS Made Simple 11. TOP PERFORMING IPOVisit www.finance-sapm.blogspot.com M LEARNINGS Made Simple 12. SECONDARY MARKET Where issued securities are traded Exit route to investor Visit www.finance-sapm.blogspot.com Price discovery Valuation by market MLEARNINGS Made Simple 13. FUNCTION OF STOCK EXCHANGE Maintain active trading Fixation of price Visit www.finance-sapm.blogspot.com Ensure safe and fair dealing Aids in financing the industry Dissemination of information MLEARNINGS Made Simple 14. REGULATORY FRAMEWORK Ministry of Finance SEBI Securities and Exchange Board of IndiaVisit www.finance-sapm.blogspot.com Governing Board of Stock ExchangeMLEARNING S Made Simple 15. MEMBERS OF MARKET Buyer SellersVisit www.finance-sapm.blogspot.com Brokers Sub Brokers ExchangeMLEARNING S Made Simple 16. Visit www.finance-sapm.blogspot.comWHAT IS THE REASON FORCURRENT FLOW OF MONEY INMARKET?Lets hear from Udayan.MLEARNING S Made Simple 17. Visit www.finance-sapm.blogspot.com 18. Visit www.finance-sapm.blogspot.comLETS LOOK AT GLOBAL OUTLOOKFOR MARKETS IN NEAR FUTURELet Shankar Sharma Speaks 19. Visit www.finance-sapm.blogspot.com 20. Visit www.finance-sapm.blogspot.comWHAT KOTAK INVESTMENTBANKERS SAYS FOR NHPC IPO?Let Falguni Speaks 21. Visit www.finance-sapm.blogspot.com


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