CAPITAL

MARKETS
GROUP 6
 GROUP MEMBERS

Afeefa Zubair Sejal Ahuja Vinod Dandi Zeba Altaf

20021321006 20021321121 20021321154 20021321162

MEANING AND
DEFINITION
“Capital market can be defined as the
mechanism which channelizes savings
into investment or productive use.” –
V.K Bhalla

 A capital market is a market for

medium and long term funds.
 It includes all organisations,
institutions and instruments that
provide long term and medium term
funds.
 EXAMPLE
• ABC requires capital for expanding its business, so it pans to
raise funds from the public by issuing new securities.

• People buy those shares through the Initial Public Offering (IPO)
process.

• After the initial buying ,trading in the secondary market.

 OBJECTIVES
 Mobilization of
 Balance between
national savings.
flow of savings and
flow of investments.

 Optimum utilization  Maintain

of financial expected rate of
resources. economic growth.
FUNCTIONS
 Mobilisation of financial
resources on a nation-wide scale.

 Securing the foreign capital.

 Effective allocation of the

mobilised financial resources.
TYPES OF CAPITAL
MARKET

PRIMARY SECONDARY
METHODS OF FLOATATION OF SECURITIES IN PRIMARY
MARKET

 Public issue through prospectus

 Offer for sale
 Private placement
 Right issue
 FUNCTIONS OF STOCK
EXCHANGE/SECONDARY
MARKET
• Economic Barometer
• Pricing of Securities
• Contributes to Economic Growth
• Liquidity
• Safety of Transactions
CLASSIFACTION OF CORPORATE SECURITIES
 REFERENCES
• https://bujhansi.ac.in/econtent/
pages/shortcodes/economics/
capital_market.pdf

• https://
www.yourarticlelibrary.com/
business/capital-market/capital-
market-objectives-importance-and-
functions/75914

• Security analysis and portfolio

management by VK bhalla