...Ex-MBA 2010-2013 Batch II Semester -3 Subject : Capital and Money Markets CMM Assignment-2: Choose 20 manufacturing company which are traded on stock exchange on all working days and 5 years of working and should have average trading volume more than 50,000 with share price range should be 100 to 250.Evaluate only profitability ratios of these company and co-relate with return on capital employed and market capitalization. Executive Summary Following 20 manufacturing companies are considered for the assignment. |Sr. |Company |Industry | Trading |Share | |No. |Name | |Volume |Price( Rs.) | |1 |Tata Motors |Auto |2140263 |170.3 | |2 |Crompton Greaves |Electric Equipment |265566 |123.15 | |3 |ITC |Cigarettes |304792 |202.15 | |4 |Amar Remedies |Personal Care |199938 |123.25 | |5 |Astral Polytechnik...
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...Introduction The stock market is comprised of two distinct markets, the primary and secondary market. While both of these markets may operate on the same exchange they are distinctively different. When making distinctions between a money and capital markets the primary determinant is time. Broadly speaking capital markets are for long term assets that extend beyond one year. This is in contrast to money markets that are used for short term assets that are up to one year. Learning Materials Primary and Secondary Markets Primary market The primary market is the initial market that securities are sold on. When you hear of a firm having an initial public offering, such as Facebook, this is a transaction on the primary market. The issuing firm will receive the funds from this initial sale which is why it is referred to as the primary market. This is a common way for firms to receive substantial amounts of capital. Practically speaking the primary market is not equally available to all. Given that firms solicit help of investment bankers it becomes necessary that they take a role in selling shares. These shares are commonly first offered to preferred customers which of course leave out the average retail investor. From a corporate perspective an IPO is also not always feasible since the firm must have a solid reputation and a potential for longevity and success. Secondary market Once a stock has been purchased directly from the firm in the primary market it will continue to trade...
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...Executive Summary Over the last few years, the capital market of Bangladesh has witnessed a haughty growth which is not in line of development in the real sector of the economy. Although, the Securities and Exchange Commission (SEC) of Bangladesh has tried to correct the irregular behavior observed in the market, very often it is argued that lack of proper and firm decisions from the regulator’s side has contributed to make the market more unstable rather than to reduce it. The paper attempts to identify the inter relationship between the capital market and money market. The Capital Market of Bangladesh is passing tough times since December 2010 as high volatility is eroding the capital of Thousands of Investors that might turn into social instability. This fall is caused by many factors that I tried to identify and tried to link up between causal factors of market crash and regulatory failure and also tried to find out the inter-relationship between capital market and money market. Primary issue related problems was faulty listing methods and IPO overpricing, few numbers of new listings, revaluating assets before company listing, high premium in issuance of right share/Repeat IPO etc. while secondary market related problems was stock splits and stock price manipulations through block trading, circular trading and insider trading. Investor’s greed and irrational behavior played a big rule to make the stock prices sky rocking as they were crazy to buy shares without judging...
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...Financial Market and Institutions Christopher Little FIN/370 June 23, 2016 Steve Garrett Financial Market and Institutions Report What comes to mind when you hear financial institutions? For most people, it is going to be a bank which is the most common type of financial institution. What about financial markets? A financial market is where buyers and sellers trade. An example of a well-known financial market is the New York Stock Exchange. This establishment trades trillions of dollars on a daily basis. Both financial markets and financial institution play a vital role within any economy. There are also primary and secondary markets as well as money markets and capital markets. We will take a look at the differences and what role they play in the economy. Let’s start with financial institutions and the example I gave earlier was a bank. A bank is the most common financial institution and is pretty straight forward. You give the bank money and they hold it for you. Then, you ask, how does a bank make money? A bank also lends out money to individuals that are looking to make a large purchase, such as a house. The bank uses the money people deposit to loan out to others and interest is paid on the loan. A bank allows consumers to take out loans for purchases, then with a set time frame, pay back the money loaned with interest. That is one reason the recession of 2008 hit so hard. The bank loaned many people money but then many of those people were...
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...“The Performance Of Capital Market And Its Impact On The Economy Of Bangladesh.” (Based On Recent Unstable Capital Market Situation.) Assignment on # Macro-Economices (Course Code: FIN-2209) 14th February, 2011 ►Prepared by, Anik Ahmed BBA, 3rd Batch, Department Of Finance Jagannath University, Dhaka. Capital Market Overview A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year. The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as the Bangladesh Bank (BB), and Securities and Exchange Commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital Market Primary Market Secondary Market In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. In Bangladesh there are two capital markets in our country. One is Dhaka Stock Exchange (DSE), and another is Chittagong Stock Exchange (CSE). History of capital market in Bangladesh: The Dhaka Stock Exchange (DSE) was setup on 28th April, 1954 that started formal...
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... | FS3032 – Capital Markets MODULE HANDBOOK 2014/15 - Semester 1 Module Lecturer: Dr Phan Tran Trung Dzung Faculty of Banking and Finance / FTU fandzung@ftu.edu.vn This module is supported by Weblearn – students are advised to access the site on a regular basis, at least once a week FS3032 Capital Markets |Teaching Location |A1101 | |Teaching Semester |1 | |Module Level |H | |Home Academic Department |LMBS | |Module Leader |Dr Phan Tran Trung Dzung | |Module Web Site |FS3032C | |Teaching Mode |Day | |Module Title |Capital Markets | |Timeslot | | |Credit Rating For Module |15 | Module Summary CODE: FS3032C TITLE: Capital Markets: Investment & Portfolio Management BRIEF DESCRIPTION: The world of...
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...Financial Institutions and Financial Markets FIN/370 Financial Institutions and Financial Markets The state of the economy in the United States is very crucial to businesses and society. The success of the economy is reliant on financial institutions and financial markets. “The market for the creation and exchange of financial assets such as money, stocks, and bonds, plays a central role in organizing and coordinating our economy” (Colander, 2013, p. 643). Financial institutions are essential in providing funding for activities that take place within the financial markets. This paper will describe the roles of financial institutions and financial markets in our economy, as well as compare and discuss the differentiations between markets. The Roles of Financial Institutions Financial institutions play a vital role in the success of our economy and financial markets. They are responsible for financial transactions such as deposits, investments, and loans. Examples of financial institutions are commercial banks, investment banks, credit unions, insurance companies, mutual funds, and brokerages. A few of the well-known U.S. financial institutions are Bank of America, JP Morgan Chase Bank, Wachovia Bank, and Wells Fargo Bank. Financial institutions provide a means of savings for society and businesses. Saving money incurs interest, which allows people and businesses to save additional funds. Financial institutions provide loans so businesses can grow...
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...institutions, markets, regulations and laws, practices, money manager analyst, transactions and claims and liabilities. function of the financial system is the mobilisation of savings, their distribution for industrial investment and stimulating capital formation to accelerate the process of economic growth The features of a financial system are as follows 1. Financial system provides an ideal linkage between depositors and investors, thus encouraging both savings and investments. 2. Financial system facilitates expansion of financial markets over space and time. 3. Financial system promotes efficient allocation of financial resources for socially desirable and economically productive purposes. 4. Financial system influences both the quality and the pace of economic development. The Indian Financial system (financial markets) is broadly divided under two heads: (i) Indian Money Market (ii) Indian Capital Market The Indian money market is the market in which short-term funds are borrowed and lent. The money market does not deal in cash, or money but in bills of exchange, grade bills and treasury bills and other instruments. The capital market in India on the other hand is the market for the medium term and long term funds. A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities. Financial System; FINANCIAL MARKETS A Financial Market can be defined...
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...2012-2013 INDIAN FINANCIAL SYSTEM TOPIC- FINANCIAL MARKET SUBMITTED TO: SUBMITTED BY: Miss Ankita Rajdev Nisha Kumari Garima Jain Kohila Chouhan Laxmi Nandwani Sanchita Vishwakarma Neha Satwani ACKNOWLEDGEMENT Guidance, help and encouragement are the essential requirement for successful completion of assignment. We own our gratitude to all those who have helped us in the preparation of this assignment. We express our deepest gratitude to our assignment guide Ms. ANKITA RAJDEV, Asst. professor for her valuable guidance and help in completion of this assignment. We feel obliged to all the respondents, friend and other who have shared their valuable time and opinion, for making significant contribution directly or indirectly in the assignment. INDEX S.no. | Topic | Page no. | 1 | INTRODUCTION TO FINANCIAL MARKET | 4-5 | 2 | MONEY MARKET | 5-6 | 3 | CAPITAL MARKET | 6-8 | 4 | PRIMARY CAPITAL MARKET | 8 | 5 | SECONDARY CAPITAL MARKET | 8-9 | Financial Markets Introduction Financial markets are a mechanism enabling participants to deal in financial claims. The markets also provide a facility in which their demands and requirements interact to set a price for such claims. The participants in the financial markets are the borrowers (issuers of securities), lenders...
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...Financial Markets and Institutions. Money Markets vs. Capital Markets The money markets lend or borrow funds for a shorter time period, one year or less period. The main characteristics of money market are deposits, loans, acceptances and bills of exchange. There are number types of institutions that are operated in money markets, such as, central banks and commercial banks. Money markets are largely unregulated and informal because most of the payments are done by phone, fax and online. Money markets provide individual business or government companies. Cash is the main purpose for opening money markets. The money market is important for ensuring companies and governments maintain the steady level of cash flow. Investors use the money markets to invest funds because money markets are safe and the amount of risk is small. The reliability of short time period gives little time for a nonpayment to happen that is why, the risk is decreased. The capital markets lend or borrow the funds for long-term period, i.e. for more than one year. The main instruments that are used in the capital market are stocks, shares, bonds, and securities of the government. Some important institutions of the capital market are stock exchanges, commercial banks and nonbank institutions, such as insurance companies, loan banks, and construction groups. In capital markets, the institutions not largely regulated. Capital markets provide fixed cash for their institutions to buy land, estate and machinery...
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...Ying – CEB 110716 Yap Hong Zhen – CEB 110084 GROUP REPORT 1 GROUP REPORT 1 Table of Contents Question No. | Details | Pages | 1 | Describe the roles and functions of financial markets in Malaysia. | 1 | 2 | Identify four (4) relevant regulators in Malaysia. | 1 | 3 | Choose two (2) regulators identified in (2) above and justify your selection i.e. explain the reasons for your choice. | 2 | 4 | Explain the roles and activities of the two regulators that you have chosen. | 2 | 5 | Give examples of actual enforcement actions that have been taken by the regulators chosen in (3) above. | 3 | 6 | References | 4 | 1) Describe the roles and functions of financial markets in Malaysia. Financial markets are forums in which suppliers of funds and demanders of funds can transact business directly. There are two operations of financial markets, which are primary market and secondary market. Primary market is financial market in which securities are initially issued; the only market in which the issuer is directly involved in the transaction. The function of the primary markets is to facilitate the efficient allocation of funds. Secondary market is financial market in which pre-owned securities (those that are not new issuer) are traded. There are also two key of financial markets: a)...
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...Capital Market the market, or realistically, the group of interrelated markets, in which capital in financial form is lent or borrowed for medium and long term and, in cases such as equities, for unspecified periods. The capital markets, in distinction from other parts of the financial market ie, the money markets, are those for long-term government securities, corporate bonds, stocks, municipal bonds issued by state and local government units, and mortgages. industry and commerce as well as government and local authorities raise capital from the capital market which performs several important functions in the process of economic development. Most important among them are the promotion of savings and investment and efficient allocation of funds among competing uses. Participants in the capital markets are many. They include the commercial banks, saving and loan associations, credit unions, mutual saving banks, finance houses, finance companies, merchant bankers, discount houses, venture capital companies, leasing companies, investment banks, investment companies, investment clubs, pension funds, stock exchanges, security companies, underwriters, portfolio-managers, and insurance companies. Capital market in Bengal was founded during the Mughal regime in the early 17th century. Although in a limited scale, there were money and capital market activities in Suba-e-Bangala throughout the 17th century. Bengal under the nawabs was fairly developed in trade and communication. An historian...
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...business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which...
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...Financial System is a system that allows the transfer of money between savers and borrowers. It helps in transferring of surplus amount of money from the savers to the borrowers who need money, which helps savers to earn on their investments, and this similarly helps the borrowers to fulfill the need of the money. A financial system helps promotes the wellbeing and also helps in improving the living standards of people. Lets start with the Capital Market in India first. Capital Market is a market in which individuals and institutions trade financial securities. The securities are sold off and bought in capital market for raising the funds (Investopedia, 2013). Capital Market includes both primary and secondary market. Capital market helps in proper channelization of funds and helps raising long- term funds. This kind of market is a continuous market and provides variety of services. The market where new securities are bought and sold for the first time is known as Primary Market. Types of issue in Primary Market may be through public offer (where shares are offered to general public), bonus issue, Follow- on public offers, private placement (intermediaries sell shares to selected clients at higher price), right offer (shares are offered to existing shareholders) etc. It helps in providing additional capital to issuer companies. Secondary Capital Market is a market where existing securities are bought and sold. Secondary market offers liquidity, which encourages even those investors...
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...has been derived from Greek word `Makros' i.e. large. What is Microeconomics ? Meaning & Definition Micro means small. Thus, micro economics analyses individualistic behaviour. It studies an individual consumer, producer, price of a particular commodity, household, etc. According to Prof. K. E. Boulding, "Micro Economics is the study of particular firm, particular household, individual prices, wages, incomes, individual industries and particular commodities." Subject Matter or Scope of Microeconomics Micro Economics is concerned with the following topics :- 1. Commodity Pricing: Prices of individual commodities are determined by market forces of demand and supply. So micro economics makes demand analysis (individual consumer behaviour) and supply analysis (individual producer behaviour). 2. Factor Pricing: Land, labour, capital and entrepreneur, all factors contribute in production process. So they get rewards in the form of rent, wages, interest and profit respectively. Micro economics deals with determination of such rewards i.e. factor prices. So micro economics is also called as 'Price Theory' or 'Value Theory'. 3. Welfare Theory: Micro economics deals with optimum allocation of available resources and maximisation of social welfare. It provides answers for 'What to produce?', 'When to produce?', 'How to produce?' and 'For whom it is to be produced?'. In short, Micro economics guides for utilizing scarce resources of...
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