investment market fundamentals
TRANSCRIPT
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Market FundamentalsAn Introduction
By: Samsher Rathore
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Presentation Outline
Types of Business Ownership
Acquiring Capital
Public markets
Market capitalization
Small cap
Mid cap
Large cap
Money Market
Debt Market
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Form of BusinessOwnershi
Proprietorship
Partnership
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Acquiring Capital
Board of Directors
Shares and share holders
Bonds
Private placement
Initial Public Offering (IPO)
Dematerialization
Dividend
Bonds vs. Shares
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Bonds vs. Shares
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Public Markets
Primary Market
Secondary Market
Stock exchangeNSE
BSE
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Market Capitalization
Total market value of a company on a stock
exchange
Small cap
Mid cap
Market capitalization
= [Company’s share price] × [ No. of share issued in the market]
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Small cap
Market capitalization $300 mn to $2 bn
High risk and high returns
Newly established companies
The management is relatively inexperienced
Their growth and performance is purely depends upon client
acquisitions
They have huge potential for explosive growth
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Large cap
Market capitalization- $10 bn and greater
Low risk and moderate to low returns
Well-established companies with well reputed
promoters
Have professional top management with an excellent
track record
Wide availability of information about the company
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Money Market
A market for short term securities
Money Market securities are highly liquid
It is consist of financial institutions and dealers of
money or credit who wish to either borrow or lend
Money market securities: Commercial Papers(CP),
Treasury Bills (T-Bills), Certificate of Deposits(CD),
Money funds etc.
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Debt Market
A market for debt securities
Debt securities: Govt. bonds, corporate Bonds,
Certificates of Deposits etc
It is consist of institutional investors, government,
traders, and other individuals
Market volatility is irrelevant to the stock market
Provides safe investment
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