| Stock €xchange- A. Stoo. exenange- fs a. bloMoum cohente. Securities Vike” Stocks spands and~ Commoadites erent Beeucagse = 3 fe 4X Senues od O. noakedplate where Fouenloma. daiaderd = -—Ond_Combames come loge. Yer to Amade Seemriti es = —~ ©The exchanse provides Ye Yoliodtsuctuie Ong sivler_ Sea ensuring taanaparendy. \iguidtty and fain ings trata = oar at _Cowuciol sole 1n Col 140 fonmadson “ Companies to siafse funds b Shing Shanes Xo the publi —Ond_ailaning *nvertoxs to buy amd-Sell those shares — fy aaily. _ E g i iret. =~ Pon“Examble ~ ‘Nokional. Stock, Exchange u a ay, Stack. Exchange ast). __ = i Funckions and croles_ op aStock._§ ae ~ = LS) Cortitintes traaing- 3+ browses 0. tplax}osim foo buying Som pe {ond Selling Secusiiives Vike Stocks and ae AMON. fovestor Sain? ) Price. RO Determines te irr poricer aa Ser sve, Sa? tosrougn ae aan and _dewtand. __ mug 9) a eme = on OS _con guick tow ony Sel oets without Signikicant houce. Shanges~_ h 3)-Cobtalfosunakon= Athens Combanies to maine, Capital by Sm aR pS tees tothe —bublic Shainyan CoP at (public oe H aeatgp TP03) - a eoVii) Tnwesiox Pniotection= Enaumes disclosure ¢ fnloumarion by \fSted Companies and seholen_ qoute “e8p Ris’ ao ——ciacutt baeXvons 4 : oe Connect Mansy, Stock exchan: Olen: “i Rannte ists enabling’ TOvemons to dsinde Seaundien ——aienert “Covninies and occas indemationay raonke i. 8) Economic, Cistouotn- Stock_exchangt» playa pivotal mule in €conomt usth_by factiitoring cobita\ foamowon, nip ond “investment Yn lot EBT Stands Jon tne Sectunittes ana Exchang India SE. ee mmm} 2S the oll lass, autho pin “Tndta. toad ovenseen meme ANA sie gui dies tne’ Secrotids manket , protect? 2 Pe in enos =} owes ond _ensuming the Smootn finetis a een 1. Secumitien manices. mae SEBT wor eriab established P1936 ond war meme Sioa tory homens in 1929 with Ye SEBT feb: mee oie nivn. ectives sf SEGT ‘include }nomalng m8 deus No! 5 Yhe_Sectorihies moked __neaelading, tne activities “co Totenmedionies and ens dpi and tanbosent deslings in ta acon and ule Of ceePonies shake enbusie. Yasar. paacatces ond Se Moniker Tntesmedianien - Requintes backs bankers and oihert In-reimedidsi2> Jo mataratn tar ~ nie. iM 2 ———$<—_—_—_—— a rr ~ a 4: Mane! Development = Paomores smauike_p}s100 A. fro = Afon_and attracts InventmeNd + ——_—_—_—— mn a -S_ Enforcement — Monitors and en} ontes it =~ a0. Sen monke+ dbuse. and! innident trading — =< Hb: Secustios offerings - Reguintes isuance nnd Sanding gl 5 Secusitt2s oven: Bene Os and OYnert_oenings -— <5, Mumbat Stock gxchange— St fs also known os the OSE a (Bombay Stocie exch! vac onenc — & fs o eq Taaia's ed+and \ongent Stockt exchays gia, ~€d_. tdhene’ faver tors bey and Se\\ Siocies ban as ard sg, Okhen financial fmtsomen’s™ =, © dts headquartered is in Mumbat_and equi Ole» Astoding Am UNdet MWe. Subenyision 4 SEBI. Sodio Sea atten = Monket steguintos ; 2 de __ ae @ AS for etXbiished In 1945. ___ ee = es a: Sang SenSex = The Sensex 15.0 Stock Makes Pndex Mot sf _sielrrens tne. Res oocmonge. -S}_O. Select 9 rou =e Stocks \isted on tne om Stock £0 ange (bss) = ences Or O benthengnte Index fo the “Tadian Pa Man kes - me . : “6 = # 4% fprowiAing 0 Snapsho? 4 Yow knetodcan stock 94 aakcese d; doings bp oy — ~ = _s=~ Biel = smenchan Se pn_Mari ket Colt money mooket = The. cal smaney manket 3g, a Shoat Jeoven_mt ae) moanike+ wheie banks ana nancial traits § PAG tors _bosttow and _lena fonds Xone’ Yheta Shoat = —Aesim liquids needs. fon Ss: B etme Ak #5 like ona terbonks lending moaked Lohere. banka rons me O00 Dom mony fon a oy SM hertiod vost _ Py __Oveninns i My, ° Soiciest ciate, in the. Call mony ensiket Huckuate et Pg bmed on. Suphy anand efndnd sie) (eee rea Ee AG Me ENETS (fx5u0_ Monvet — AY fs alsa Known o> th mg monket e e==» oan _ne\o) - Seam date ing ondOat =) (ee | A9)99I9999900: 2 Mosiket = Snxkotuments oa Components of Moness \)Taeoausiy Bflis Kr= bills) - Shoas -Aea1m_deo¥ aeons issued w ovesinmen ts... ically Loi th_ma: = Mom oO foro days 1o one yeon- 7 2) ae Raed Deposit (CS = "Wie. deposits Hered by ~_banks ana. Vinancfal %natiteions voi. Mixed Yeorens_ond AW) Aeneas 10.42 + i 3) Commencha\ Papor~ Shoott-Aeorm onsecuned Yoromfss ony Hodes Bsued by Cosporations ro oratse. junds fox Shas’ toim, Atnancin enki a 4) peeve Agreements (Repos) - Shosit = kerm opree ments “where one [pitty Sells SecuomMes o_anoknet pow Lath om on. Acement AS clehustchare. Aner O_o. aio date} ual “yoke higher fance: - S) “Bankers Acceptances — A shaxt~leaim esteath Snventnent dm Cate ated by o non-hnancial fin and guonanieed bya ~ banks 1o make payment at a fotune. adie» _ = b) Shoat ~tearm Bonds — Bonds with mature tubtcal - sianging \tom one to Jive Wears . broviding iVverosh om totth biked nso ‘payments ahd mekwininy tho ; peuncrbal_at mations. 3 — 3) Money Mutual fonds —._Shoiit —tenm., loin -stisk Secuuikies Sven oa =hills 5 Motuo\ Ponds Anos fovertin CDs and Commencia\ paher. oltenng fnverbon,- 4) Cornmmcral Bills = Shoot -lom debs yaued bu = Conporotion fon Nnoncing tnade Anomactiom. 9 9) “Tat enw, bo Monke} ~ Anvolver the lho ouns on lending “Tne bury See Sasa mebunchape CN ped ac 3) Saaallite Benlew| $0.) —Ss_seivp by the Red in bane oi + Od A_IN tno a aad =dfstoribudion. 5) Grovennment Seeustten « Mons os Feakunen 4 pane Monkes - 12009) a \) Shostt -Leaim focun = De ols ait Shoat duxokon denadtat mit =, Opse ts, Usual \@a Yon a \ eon Ad Arik kg a, 2) Nigh Liquidity = Gosy ho buy OA Sell _onseds vai taut m Significant \pwee. “impact ib Boy Pe 2) Lou Ris’ = Crenorally Considoud Saft dues 30 Shon metus Yves and Wg cored quality, id a me) Requiatea - Subject Ao government Srepulartons 40° _| : EMsusie Sharility and invertor fnoieckon. pu eee 5) Monetary Polish Tools dunes. “Moke AY s nents ste —, Manoa Aqui onamy ME TEN + amg b) Divewe Panticfpanw- Giovernmendss ania, Cox bantait ff mag “ons and other erties poniicibate fn she mnoney mantkes Ome 4) Primarily Aitutional= 4a is naosLiy used by” inaaitotin re 7 =n» Ao \oatge. {Nvertoovs Sothern Won individ val Or, Come iveriom = * ir 40. aT rer ———_—_—_____—+ emme_ Powis | SERS = } Ome ea} ag a eee) Regulation = SEB1 ostequlates the secu hen motkers i — ~_oXa those Ynvolved Yn fh: wi ones ty _— 2) py Se Ay coieates oivles and gotdeltnes fost Sapte "how t monte 4 alpen ate: —_____—_¥ qj Smmee® 8) Rogfstnaton— SEBI reatstew oversees enastion A : ARK Shock exchan, + bata kod and mutual funda zs Anapection= Ak Ynbpec.ts and Inver tygoses 4c ene ® ~ compliance uaith sivlen + __ Ba Ms) Penalt =Kang ne. aivles 5 oe ae Sy Rae Aispuden = it na Me. monte +: - . 3) Mankes monttoaina = St@L warene over Sa aing to 3 Prevent Gat ln. ana Anova- sa 9) Tnvestor Education = SLBL educates Faventonu aboot 2 the monice + and Heist Bite - = — —thiee. Weitcin: of. Pob\tic Awve = Me term * bree. }aiemn, = public. 2249. : Jo the biocitce o ae ps = hanies to dedenmane the ree a+ whreh “Mey o. Mein Showex to sne poblie dioting an Yn¥tta\ public — ang {2P0) 021 a. Jollus-on public ofeuing LCP0). 9g fe giao, MECLNAMISM. Ne COMPANW De eee e Undenoiites doeide ane fsave parce bad on om Noxious -jactess Such od Moake + Conditrons demand my — Svbbiy dunamfos . t fondamentals ee - Amen ONd iNveston Sensi ment: mere __ = ebay “ne “Book Bur larn 9 — Book Duildinga 18 a pores unod | by Companies toVdelmmine tWhe\nce at ee = will _OHen thei Shanes to the public dust - faitia\ public. otew99 3%) 05 a JoMlow-on public log Poa) involv é> Corea tt os “ogo! om a. list) insiénton Om dirs along oii ose oe De wil\i eo——p Minas Monke+ Calpital_trontced ALES © Components 1 Hho iis.o Companens § Man cial maakeys volhere [Fenancia\ Mastek a Stsoovs Aeon Toocrtauainy Long \eren boxsiauisy =>, ——_<§_ Loko place tokd place 3 Py g Time bonis Lem tron one yean ost _| Mone. Khan one fon y Re One. ort pe le Seg Retimnon | los ste in on invartm, High o> Compone lo ong Yi nienkment| =e + Money _mosleet: Oring? Deala with|Pinancval claims .6sex | Bonds nid Stones ore Aco ond Secu Men ane | dealt in the Cobikal a Aealt- in Ye monen Maska| Monet 1d mings? RAS IC Low Catedc: andmintinsy Wig coeAct ona monks imag tl ~ m4 tte emg! ig.uid [Wins guiddy in Me _—_} Lous Liquide in CM emp Pace dite [No pe al Powee. ASCansy Mechan a ONiSM ExiSkds in Mis | =vSMm exis's to Capral fmm | ket: ee _|_ manike + esa ae sqv\aton ~TCenrra\ Bank iS Moe sregu| Dent dur Cendnal Banks ——— S| + lo ton 9 Mons Mottek: Sbenial se oman a |_quYnosity \ke SpmTek- ie Oe 11) duns aly inten wsiiling 1 noo} Si (5 a. Gate eosin DéNerence bekoeen Money ana Ca ‘i aman unt kon zi _|Toronro.cc oom Mosh) Joho. | over we bone jo ko\_ Monee + —Renin —— —Dikerence. “pekween Spek ana woos Pury —t Moke} ia [Rasonmy rome YS 48.0- morke Fusnene eu — | Seeamsdses omevssurced in} dhe makes foot tne. bon} _} Aime, er ¥hen, exist Company O71 0 ho. Campy | Dedtw ies cn Yarn ois Tox) >ke ¥ 15 Qovenned, nyse __V}_ ana Comipanres ¥ No Axed gcogaabhical ——\oca\to%\ Decided by the mms c as p ort_| Only boi in: Seevarties doves = jon bag |The Co ls _Sectonti @> Per thon dude Hy Ao the siueaie | Sth O71 Hooroupn. AN Ntenmedt Re rates vs a | _Aiswocd, + ne Naimec4 Manis eee = Seconay aa |Seconaas pnonked $s. = mnonke+ hee. ola jsaved existing Second —s- one tmoded on Stock _ 9 Excinonge> + ae Se ise gu\ored bi iowa a Stock eat aos and — Sebi = Sy vs lornked at D Shecife ~ A place. Ais determined by demand. ond Subbly, o we Secuni sammy =e = Bon bu inp Ana Selleg Secrubien OA laces 7 “The Suanenahip, ae Seeunthies fd &xenanged hekveen overtors sina iNwolwement company: At poms pal oa company On. i ond Sold Mone i's NO invalveruntg re — Bi deat! man Save ana PLCS ee —t existing Seeunsisen Ny,Ratieien ot en. 403 thoi eee a decisions— ‘addpied be 0. Comipony sep 021 ce Ane. distaibuti ono, polis to. vst eee } “These policies outline how rouch a} the _eannkn, “will ~ he paid out a» dividends. aeloined ‘on fotute “inverse pn oxUsed fos omen purposes - Companies rma choose io diskmibuie dtutdenas s /_requlastls Wlonly .ox1 not a+ all, debending ow iol a ond Ciscumstances- Companies ma, dopt 3 Wesent “Aividena_ Stantegian a “boned on et Vike financial bertoumance, g OL) +h, emmy. —psospects =ONd_ovesall Conpoxare. objectives a? MiGonsestunlive. Diwidend Polic Conseawative diufdena ae Ce aibuting @ Smallest _ = onda ie Anning em =? — policies fnvolve. Combanies di j —harcpanttion —O their eornings on div fy Mone for eho ee ds Or Uncentagnikes - = Libe.sial UOukABAA bole 4 ince wolve = tape ad = i mea Fa. Gy = Fy cong also mit She Sind obilsty Ao ateinverte Wankel. Re fon Chore. poeEs — = a “Sound 03 Slowie. dividend Policy =A dound_and_ ae a Comfient and twell _naied ab prsac! Jo_distnibuiing dividends ___ 0 “Th? s_ policy attaches equal Yon Iposiiance Ao Companys 2 Pie mann and shanelnoldens' Cusme nt _@xbeckaMons ond Asien do balance. tne boi ste osona -bhy Pri tn? ot at! i ee 2 isis Sac: cansidens Me. Company's eoarnings a Mow ata Sotuae jpiouata Ymospec ts = ——__— a - ie pues F th omming Od vantoses of Staple dividend Poli ci Fig " mi) oe‘) Shostelno ders SotfSfaction= Undext dnts oli ctepplan divi 4 omg “ends dite. Atsrnibuted_orongs Shareholders which bei me kiss 3 be kept them Saiislied a oy a. 5 Sound dividend polscy,- pr hathan if 2 J gemma {5) Shaneholders Confidence= Due. to Stable. And stegulaat gma — dividend, a. Confiaence in the mind o} the. Shaxehal ome Created + ut 225 ES ome 852) Siobslity fn Monticet Rarice oy share — Due, Lo Mesa Temes “Aividend Wstarbw\ed by Ye company te Iaenes th ey also there“ isles Hucoott! ee tere 33) Lo 4 xciagan_long-eatm. oa ~ Sk en cow : “ene oy inverto. los _Abwidend + baby § nol Incame — Sable diChangesoat funds €xponsion : hoo Tmpact= Stable div idends hayovis -Comipany's Casi Hlous dusting unexpeeted ts al sijua ton- + €xpechions - Lohen a.Combany esharlishes o Stolle gem oo Come. to. expect senulon Avid eng EE Cas - Cotta briérune. on Compaty + thal ollocation= AS 4ool. i ( oo a._combanys ability, to allocate Cafpfint quam i cross diffenen+ omneos 4 business - —_ roe __/ ae Re ee 2 ae L 1) Sconlp Dividends — Paymnd dividend in Cosh . Shonetel dae Stecetwe Cenkthrcates ad Utmomisiosy noken) thatcan be exchangil em oa oa coin a4. Bh len a terbuomons. 2 e BiuiAends “This fom is not Common. in tins the. Combany oom _1Shuo debentine in lev % dividends to its shareholdow: om 3) Bonus shonerlonsiock dasdends)—Soread q-baying dividends out ee cnhany th distal butes Such sysciveital “oy =~) Pari tabiltly — Companite uaitn Stalole ona high. paiohis ane. Wy Marie likely Mio_poy 014 gutor dividends - Pacdorsafecting dividend polity= c -_s~ ae fg. wen,» Cosh How = Positive cosh Movs ensunes_c Company, nor the | Og fonds 10 distotilbuie. dtuident- Comn\panies maiaint seinvat! 2b May AisAni bude Mone = Pang > Company's Lioycte = CraiouattBloge orm the. ea while mature Cobian mg Ai AE08 = | ome Ngee) Deb dhiiqa\ion= Companies colth high. deb levela_moy faites ome del sxehopens (roleod gq, dividend dstavbutian gnomic CondMans cintenest orotes one ores 8) Make Condttion= £4 o\so cnlwuence_dwidend paliey Ome orion Senrimens Cor Ps ome UW) O\ien'S Model 2 a {— 3 24 3 emo al ieat'S Model oh dividend policy, proposed by Samed poms Walter in Obd- = oy omen Ky Nocunes on tne relationship be \oeen the finns — ems inteinal rate tedium (4) and 18 cost of Calpiol ig om Fn_deten mining the optim al diwidend are a poms © The Model Supgps tna tne optional dt b @ dAebends on ine Janon' investment: opporunikiee—4 @ o founvla , P= Dre \e-0) Lt aK= Cos+ oy Capital © The kes, poinds. Sp Waller's Model ote: a) dt the. ae Rate or Retwin)_iS grcaion Yat the Cost op capiall ¥=k). the” fram Should” oretain orinings> ANA meinvat them ) th _the TRA 15 lem than We cost ay Capital xe \) the feo —Shovia distribute dividends - © Asom|ptions Sh Waliets madel— 4) No 40xa5_on dividends | D-Tho. Cost 6 o-Capit al sremains Contant . Bees ane. Certain EY) the fisens inuertment policy Shays txed S) Externa\ Financing is not bons ideded ae Grontdion Model is developed by Mysion Condon Crondan's Model —= Grsidon:s ree $s_also Kn oun ow Giomdon Ginanth Model on the Di ‘tts ; vidend Discount Mode} 4 Ji isa marhod ured to value a. conata s ovalve oa St by Const dens Its _@xher tec Suture Afurdends Ca 8 0 £4 o»sumas Hoot dividends PRR Sc }__oiate fndefenclely. toh ghia 4-8. Cona an fo foumula P= Ely) ae mia =n sa = Marke }}mite 4 shane, aa = Forinmgas_pmn Shoe [£0s) le le le lelewle le wie pce pee O66. 0.0 Oe eee | cL idee dae~Pssumphons oy Grom Aon mode) — ay ) Dividends oe falconry. a Y_piidends grow od a. Constar+ orate: 3) Me requised oe 2 ste Luorn L&fscound orale.) orem oe Constany- —__ Fm, 4) A, Equity Miams ett p. res a 5) No taxes ‘ : = Sources Stone = aie aw Long team Pinance—Long ream Mnance. 27> 10 Juni —erme 02 Vapital toto. burites on Yadividual bdretouos oot — ome _iMieats in Jom on extended beniod do ine exceeding _ og one — fame 9 THIS — Samm = mens Ses MAChinedy . O21 1 2s Pmmy 6 Langetests haonce Con be. obbained: Ynsiouah S ounces eee Such o> bank loans. bonds equity }inaning Dat —— me tained Cosmnunga : ee Those tonds one Csiucio\ + — sutth development and — - tne long ene —— Y i a “Scale ti no siea\ es Slate. {stonisiucs wait longen ure}ut liver > bumnemsta Subba thea aed IniMaMves ove Lome Sousicen ae Leng: Sesion Hinonce—io 1) £qu0 ae Equa shane $3 “fs Yhe_most paveuteees Sy =tenm \rnan ier Stale roised calpy b isaue. 4 equity, ‘abaue and Seeracnetsnih Ao. fe mney ace ee Yoo tn the Company, — i. Os12__—_—_ No paymnen +: cligokion oa —D Shane a_uilsk Loith shaxehold ois 3) Jm\moved tancial lesenage. 2B Plenbints An_dwidend payments SL Grpnals inves toon Conhidence Dens op ue b Byun Shane — : ae 2-9 Bay oa 72) Roxen Yio) 38th ConAsiol i Sen a Ainidend payments Eee Mornket Pertepiron ae u f oo amequineme ns i. r sobre nce. Shane — ence Shanes provide storia £ aha with ek. dividends sno A sngnis O OA Oo. lower sisk poole. ors +) Retained Emmnings = Companion Can he i nues+ + Ynenn > frokits inact: into th bine pene as “tenn, aa ee‘Mesnits % dave oy Debentabe — Y) Debentustes oer sable. fixed interest pa: ends Dhey don't dilute. Dunneaship on goons Vokin, pe 3) Sntiient on Achentunes tsc}ten. ee deductt we =~ 4) DebentimeNaldou Nove poviontitey tn me payene o4 Aus j— Pg higuidaition : = prota o fexble. Bounce 4 g ong form, fenance- any Dmen ts o Tue 4 Dehendune — ht =n 2 peiisp ation Ao oreb Yorinet bal O- matunily = d_inteiess payments can Stain quia as) Anrenont eybenres Via Snancial bunden 4) Deo\ Loi ty Stuck oiler — _S) Raise toncenr obov+ binaneial health toh Om _ Pmme S)\ Private. Placements — d+ involves Sellen, at ——- Z dine city, 4o a. Smol\\ dsoub 4 nverons sotnen vied ome Yonah. ‘publi cm on KES ee ea 4 SAD aig om Shosit Tesi Prnance — Shosit ~ teoim hnance ee to the funding oy Cabital that o. Company oxi ae outsa oxo utelativel Le Us aly lena ——!| enpe a sien ae Yo Coven expenses Sieh a faven — —tpunchares | ol_ana*Sh ott -totm liabilities _ See® 9 Shortt —Ae.sirn. x nce_Con be obained though Sag _thanit loons, rmdde. core drts ae Hh : can cAlebout : =a “obestadions a Sousices -of,- Orme, j) Permanent ox Fixdd Woaiting Capithl— The eninimamn omouna tum needed fom day-do doy oe is z 0. oy i) ern ioe pital Pluctunstona bared on Shoatt= 4 —mne —teim chon: ike. onai_de ti ana = A ot 95 also Known o> Hatem — Cob iia). =. ae ayectng Loathing Capital equinemenls = = Natusie o Business ) eo>and mating}) Natene sf Busines. Dijjenent: §nauntarien Tove atasines. 3 40) Aynamics-—_— . © tos eae esis cornpanies. may} hove hight \omthiy ~h Calfital eg suonile. -— visiemens “due to foxemio: Needs “U3 @unce - oriented businesses oo 2 \owen eqns eieect ry Soo = —$—__——— es ee a nce ‘peaks and valleys ee = Sr siequine Addslronal Wioalcin, obi sal dus’ a } Seosdna to Support incre area Rocieuen and — 3) Open ng exting 6 ae ame lenavn am op He opainimns Cyete ona etme. Sh Mont O conn stale fn o$es1 014 qa F Sinton Sinisned Sell them ond “+ payment influ c } ences ae Copita)__siequisie nents —_ ES A) aicuaik ote — Rab: pialy Sesou Pe ex OMe n, — £m requiate. Oddi tional woaAkm: \ An dino Ce fneseon, Siig } __broduc von , exipand foctibies aa mone. —Cmnployeeds 3 Policy —Coedit tems gaionted by tne. concenn Samo 40 £8 —cuntdimers or sell ax eredit Sesima anand Same a 15 Supphiens till alsa e\pck dhe. \oostcing Copa Same — quisremen ks evel Ch Weiter the. haices tis aaa Bigher fovecens aoe Calaital-%) Contingenciea—Ristos_in burnings also im pack opanating qsciencyp and or slpfta\ needs i =, Buninens Soles - “The. voltmes 4 Salea_Sigm brea: aot le eae cen the. tearing Cahi tol Needs DL a buxnew 10). Aqokien= Ploctuokons in sania mae and laaun Aggy costs can Sian {icand Smack 0 Company's 100 mr He Copital ne om. = Dyjerence. blo _tntencam Y final dividend Nog, Ae —_ {0 ot