Professional Documents
Culture Documents
43 Indian - Capital - Market
43 Indian - Capital - Market
Primary Market
Secondary Market
SEBI
•Brokers
•Investment Bankers
Primary Secondary •Stock Exchanges
•Underwriters
• After 1992, promoter and merchant banker together decide the price
of the issue.
Fixed price mechanism of new issue
• CCI regime
• To offer share at a fixed price
• Firm and merchant banker decide an offer price
• Investor opinion wasn’t considered while setting
offer price
• Long time lag among the date of pricing, the date the
issue opens ,and the date when trading commences
• Raises possibility of price fluctuations in intervening
period
Book Building-A new issue mechanism
in India
Secondary/Stock
market!!!!
JARGON OF EQUITY
MARKET:
• SECURITY
• BOND
• STOCK
1)COMMON STOCKS
2)PREFERRED STOCKS
• SHARE
• MUTUAL FUNDS.
Developmental role:
Related Functions:
WHY STOCK PRICE RISES?
The price of every stock increases or decreases for the
following possible reasons:
•Unethical practices.
•Big irrational greed, excessive speculation.
•Lack of protection to interests of the genuine and small
investors .
•Trading is extremely thin and restricted.
•Structural and organisational imbalance in the growth of the
stock market.
•Volatility of the market has increased over the years.
HOW TO MAKE MONEY
FROM CAITAL MARKET?