Issues & Considerations in Financial Feasibility: Presented by Group 3

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Presented by Group 3

ISSUES & CONSIDERATIONS IN FINANCIAL FEASIBILITY

Financial Markets
A Market is a place where buyers and sellers Participate in the trade of Assets such as equities, bonds, currencies and derivatives. Financial Markets are where financial Instruments/products are exchanged.

Structure of Financial Markets


FINANCIAL MARKET

Money Market

Debt Market

Forex Market

Capital Market

Money Market
Markets for short term
Borrowing Lending

Primarily used by Banks Money Market Instruments


Term Money Market Call Or Notice Money Treasury Bills Commercial Papers

Debt Market
Debt
Contract One Party lends to another Party Predetermined
Interest Rates and Term

Participants
Banks Financial Institutions Mutual Funds Insurance Companies etc.

Instruments
Government Securities (G-Secs) Public Sector Units Bonds Corporate Securities

Foreign Exchange Market


Foreign Goods
Payments in Foreign Currency Forex Market

Participants
Government
Payments for Imports Repayment of Loans

Importers

Exchange Rates One Currency in terms of other (Eg. 1 US Dollar = 45 Rupees)


Bid Rate Offer Rate

Capital Market
Long Term Funds Raised by
Government Corporates

Trading Instruments used


Shares Derivatives Units of Mutual Funds

Capital Market
Primary Market
Instruments issued for first time Used by
Government/Corporates/PSUs

IPO
Initial Public Offering

Secondary Market
Trading of already issued
Stocks Bonds

Stock Exchange

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