Expected Questions from Money Market & Capital Market:
1.TB (TREASURY BILLS): Treasury Bills are categorized as Money Market instruments,issued when the Govt need Money for a shorter period. It has maximum maturity of 364days & Presently issued in 3 maturities. Namely 91,182 & 364. These are 0 coupon securities & pay no interest. Rather, they are issued bu a discount (at a reduced amt) & redeemed (given back money) at the face value at maturity.
For Eg: a 91day Treasury Bill of ₹.100 (face value) may be issued at say ₹.98.20, i.e. at a discount say ₹.1.80 & would be redeemed at the face value of ₹.100.
2.CP (COMMERCIAL PAPER): Its a short term Money Market Instrument is issued at a discount (at a reduced amt) & redeemed at the value at maturity. Its issued in the form of promissory note or in a dematterialised form. Big Corporate,Primary Dealers & FI's are eligible to issue CP. The maturity periode of each CP is 7-365days from the date of issue. CP can be issued denominations of ₹.5 Lakh or Multiples thereof. Only a schedule Bank can act as an issuing & paying agent (IPA) for issuance of CP.
3.DEMATERIALISATION: Dematerialisation is a process by which the paper certificates of an investor are taken back by the Company/Registrar & actually destroyed & an equivalent No. of Securities are credited in electronic holdings of that investor.
Storage of Dematerialised Shares in Depository is the body which is responsible for storing & maintaining investor's securities in demat/electronic formal. In India there are 2 depositories i.e. 1.NSDL 2.CDSL.
4.DEMAT A/C: Demat is short name of Dematerialized A/c. If 1 has to save Money/Cheque Payments, the He/She needs to open a Bank A/c. Similarly 1 needs to open a Demat A/c if He/She wants to similar to a Bank A/c wherein the actual Money is being replaced by shares. In order to open a Demat A/c, 1 needs to approach the DP (Depository Participant).
In India, a Demat A/c is type of Banking A/c that dematerialise paper based physical stock shares. This A/c used to avoid holding of physical shares, the shares are bought as well as sold through a stock broker. In this case the advantage is that 1 doesn't need any physical evidence for possessing these shares. All the things are taken care of by DP.
5.DEPOSITORY PARTICIPANT: DP is the Market Intermediary through which investors can avail the Depository Services. DP provides FS & includes organizations like Banks, Brokers, Custodians & FIs.
6.SENSEX & NIFTY: SENSEX is the short term for the words SENSITIVE INDEX & is associate the Bombay Stock Exchange (BSE). The SENSEX was 1st formed on 01.01.1986 & used the Market Capitalization of 30 most traded stocks of BSE. Where as NSE has 50 most traded stocks of NSE-SENSEX is the Index of BSE.
NIFTY is Index of NSE. both will show daily trading marks. SENSEX & NIFTY both are an INDEX, an Index is basically an indicator it indicates whether most of stocks have gone up/gone down.
7.SEBI & IPO: SEBI is the regulator for the Securities Market in India. Originally setup by the GOI in 1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by CB Bhave.
IPO is Initial Public Offering. This's the 1st offering of shares to general public from a company wishes to list on the Stock Exchanges.
8.FII & FDI: FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An Institution established outside India which proposes to invest in Indian Market, in other words buying Indian stocks. FIIs generally buy in large volumes which has an impact on stock markets. Institutional Investors includes Pension Fund,Mutual Fund,Insurance Companies,Banks,Etc.
-FDI (Foreign Direct Investment) occurer with purchase of 'Physical Assets/Significant Amt of ownership (stock) of a company in another country in order to gain a measure of management control' (or) a Foreign Company having a stake in Indian Company.
9.DISINVESTMENT: The Selling the Govt stake in public sector undertakings.
10.MUTUAL FUND: Mutual Fund are investment companies that Pool Money from investors at large & offer to sell/buy back its shares on a continuous basis & use the capital thus raised to invest in securities of different companies. the Mutual Fund will have a fund merger that trades the Pooled Money on regular basis. the Net Proceeds/Losses are then typically distributed to investors annually. A company that invests its clients Pooled Fund into securities that match its declared. Assets Management Companies provide investors with more diversification & investing options than they would have by themselves. Mutual Funds,Hedge Funds & Pension Plans are all run by Asset Management Companies. These Companies earn income by charging service fees to their clients.
(to be continued)..
11. NABARD
12. DERIVATIVE....
1.TB (TREASURY BILLS): Treasury Bills are categorized as Money Market instruments,issued when the Govt need Money for a shorter period. It has maximum maturity of 364days & Presently issued in 3 maturities. Namely 91,182 & 364. These are 0 coupon securities & pay no interest. Rather, they are issued bu a discount (at a reduced amt) & redeemed (given back money) at the face value at maturity.
For Eg: a 91day Treasury Bill of ₹.100 (face value) may be issued at say ₹.98.20, i.e. at a discount say ₹.1.80 & would be redeemed at the face value of ₹.100.
2.CP (COMMERCIAL PAPER): Its a short term Money Market Instrument is issued at a discount (at a reduced amt) & redeemed at the value at maturity. Its issued in the form of promissory note or in a dematterialised form. Big Corporate,Primary Dealers & FI's are eligible to issue CP. The maturity periode of each CP is 7-365days from the date of issue. CP can be issued denominations of ₹.5 Lakh or Multiples thereof. Only a schedule Bank can act as an issuing & paying agent (IPA) for issuance of CP.
3.DEMATERIALISATION: Dematerialisation is a process by which the paper certificates of an investor are taken back by the Company/Registrar & actually destroyed & an equivalent No. of Securities are credited in electronic holdings of that investor.
Storage of Dematerialised Shares in Depository is the body which is responsible for storing & maintaining investor's securities in demat/electronic formal. In India there are 2 depositories i.e. 1.NSDL 2.CDSL.
4.DEMAT A/C: Demat is short name of Dematerialized A/c. If 1 has to save Money/Cheque Payments, the He/She needs to open a Bank A/c. Similarly 1 needs to open a Demat A/c if He/She wants to similar to a Bank A/c wherein the actual Money is being replaced by shares. In order to open a Demat A/c, 1 needs to approach the DP (Depository Participant).
In India, a Demat A/c is type of Banking A/c that dematerialise paper based physical stock shares. This A/c used to avoid holding of physical shares, the shares are bought as well as sold through a stock broker. In this case the advantage is that 1 doesn't need any physical evidence for possessing these shares. All the things are taken care of by DP.
5.DEPOSITORY PARTICIPANT: DP is the Market Intermediary through which investors can avail the Depository Services. DP provides FS & includes organizations like Banks, Brokers, Custodians & FIs.
6.SENSEX & NIFTY: SENSEX is the short term for the words SENSITIVE INDEX & is associate the Bombay Stock Exchange (BSE). The SENSEX was 1st formed on 01.01.1986 & used the Market Capitalization of 30 most traded stocks of BSE. Where as NSE has 50 most traded stocks of NSE-SENSEX is the Index of BSE.
NIFTY is Index of NSE. both will show daily trading marks. SENSEX & NIFTY both are an INDEX, an Index is basically an indicator it indicates whether most of stocks have gone up/gone down.
7.SEBI & IPO: SEBI is the regulator for the Securities Market in India. Originally setup by the GOI in 1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by CB Bhave.
IPO is Initial Public Offering. This's the 1st offering of shares to general public from a company wishes to list on the Stock Exchanges.
8.FII & FDI: FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An Institution established outside India which proposes to invest in Indian Market, in other words buying Indian stocks. FIIs generally buy in large volumes which has an impact on stock markets. Institutional Investors includes Pension Fund,Mutual Fund,Insurance Companies,Banks,Etc.
-FDI (Foreign Direct Investment) occurer with purchase of 'Physical Assets/Significant Amt of ownership (stock) of a company in another country in order to gain a measure of management control' (or) a Foreign Company having a stake in Indian Company.
9.DISINVESTMENT: The Selling the Govt stake in public sector undertakings.
10.MUTUAL FUND: Mutual Fund are investment companies that Pool Money from investors at large & offer to sell/buy back its shares on a continuous basis & use the capital thus raised to invest in securities of different companies. the Mutual Fund will have a fund merger that trades the Pooled Money on regular basis. the Net Proceeds/Losses are then typically distributed to investors annually. A company that invests its clients Pooled Fund into securities that match its declared. Assets Management Companies provide investors with more diversification & investing options than they would have by themselves. Mutual Funds,Hedge Funds & Pension Plans are all run by Asset Management Companies. These Companies earn income by charging service fees to their clients.
(to be continued)..
11. NABARD
12. DERIVATIVE....
No comments:
Post a Comment