m³Sacrifice of certain present value for some

uncertain future value´

Economic activity
Eg stocks mf bonds money mkt funds collctibles
m Oeal
m Oeal estate
m Bullion
m Art
m Financial
m Debts
M Equity
M MF
m Expectd return
m Oisk
m Liqudity/mktablity
m Tax cnsideration
m Safety
m Income
m Growth of capital
m Tax minimization
m Marketability
m Mkt wch deals with financial assets or instrments
issued by org, corporate units, central n state
govts
©

 
  
a rimary mkt- mkt for public issues(I

a Secondary mkt-deals with already issued
securities of all types, thru authorised stock
xchanges.
m The securities contracts(regulation act 1956
m SEBI Act 1992
m Depositories Act 1996
m Foreign Xchange regulation Act, 1973
m Companies Act 1956 etc
m Ctrl over issue of capital
m Establishment of regulator
m Screen based trading
m Oisk mgt
m Trading Cycle
m Dematerialization
m Derivatives
m Settlement Guarantee
m Body of individuals whether incorporated or not,
constituted for the purpose of assisting, regulating
or controlling the busnz of buying, selling or
dealing in securities.
m Mobilization
m Safe n fair deal
m Canalization of funds
m Oaises standard of performance of cmpny
m Info to investors
m Fixation of prices
m romotes economic growth
m Formal admission of security to trading platform of
hhe exchange
Benefits
Trading platform
Fair price
Liquidity
orablity
Easy tax assesments
Nation¶s devlpmnt
m Selection of broker
m Agreement with broker
m lacing an order

Dayorder
GTC- Goods till Cancelled
GTD- Goods till date/days
I
C- Immediate or cancel order
F
- Fill or kill
Limit price order
market price order
stop loss price order
Disclosed order
Execution of order
Issue of Contract note
settlement
mSpeculation
Investment to make quick money by selling the
securities on his own a/c & risk.
Market Makers
Don¶t earn commission from their activities.
Simply buy n sell share on their own a/c. buy sell
diffrnz z called Spread.
m Involves what counter parties owe , and which
counter parties are due to receive on the
settlement date thereafter the obligations are
discharged by settlement.
m Clearing corporation , clearing members ,
custodians, clearing banks, depositories and
roffesional clearing member.
m rocess of settlement
Determination of
bligation
ay in funds and Securities
ay out of funds and securities
m hysical share certificates of an investor are taken
back by the company and an equivalent number of
securities are credited in e-form at the request of
investor.
m This s/m holds shares in the form of e-form.
m This is paperless trading and transfers
electronically without involving share certificates
and transfer deeds.
m Two depositories
NSDL(national Securities Depository ltd
CDSL(Central Depository Services India ltd
NSDL(national Securities Depository ltd
1st indian depository promted by IDBI, unit trust of
india and NSE to provide e-depository facilities
CDSL(Central Depository Services India ltd
promoted by BSE, association with HDFC bank,
bank of india, Bank of baroda,SBI
m Dematerialization
m Oematerialization
m A/c transfer
m ledge & hypothecation
m Linkages with clearing system
m Corporate actions
m Agent of depository & is the medium thru which
shares are held in e-form.
m Are representatives of the investor, providing the
link b/w the investor and the company through the
depository.
Activities of D include
a Maintaining securities a/c balances
a Intimation of the position of the account to
investors periodically.
m Exercise conducted by rating organization to
evaluate the credit worthiness of the issuer wrt the
instrument being issued.
m COISIL(credit rating & info services of India ltd
m ICOA(Invest info n credit rating agency of India 
m CAOE(credit analysis & research ltd
m
NICOA