Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
GROUP MEMBERS


Keyur Mota.

33



Ankita Nagap.

34



Manali Nare.

35



Subhakti Palekar.

36



Rupali Palve.

3...
CONTENTS










Introduction.
Types of capital market instrument
Equity share
Preference share
Debenture
Bonds...
INTRODUCTION





The capital market is the market for securities
where companies and the government can rise long
term ...
BASIC CAPITAL MARKET
INSTRUMENTS
EQUITY SHARES








According to the Companies Act 1956, equity shares
are that part of the share capital of the
com...
MERITS OF EQUITY SHARES


A permanent source of finance to the company



No fixed rate of dividend



Easy liquidity a...
LIMITATIONS OF EQUITY
SHARES


No guarantee on returns to shareholders



Loss of managerial control
PREFERENCE SHARES






Preference shares are known as preferred stock.
Preference share capital has two priorities i.e...
TYPES OF PREFERENCE SHARE
MERITS OF PREFERENCE SHARE CAPITAL
From Company’s point of view


Hybrid security



Absence of voting rights



No dil...
LIMITATIONS OF PREFERENCE SHARES
From Investor ’s point of view


Not secured



Not an attractive investment



No rig...
DEBENTURES




When a corporation is in need of fund in addition
to share capital it borrows money by issuing
debentures...
TYPES OF DEBENTURES

Redeemable
or
irredeemable

Convertible
or nonconvertible

Secured
or
unsecured

Bearer
or
registered
MERITS OF DEBENTURES


No loss of managerial control



A Flexible source of finance



Reduces burden of tax of the co...
LIMITATION OF DEBENTURES


Fixed rate on interest



Companies may have to mortgage their assets



Not an attractive i...
BONDS






Bonds are issued by public authorities, credit
institutions, companies and super national institutions
in t...
TYPES OF BONDS


Bearer bonds



Registered bonds



Callable bonds



Convertible bonds



Zero coupon bonds



Fix...
DIFFERENCE BETWEEN
EQUITY SECURITY

DEBT SECURITY

Owner of the company.

Creditor of the company.

Get Dividend only when...
CONCLUSION
Capital market plays an important role in
ensuring the emergence of a vigorous and efficient
economy.
It facili...
REFERENCE
BIBLIOGRAPHY




Financial Markets
And Financial
Services In IndiaBenson Kunjukuju
Equity Market-IIAnita Bobad...
Capital market instruments
Capital market instruments
Upcoming SlideShare
Loading in …5
×
Upcoming SlideShare
Capital market instrument
Next
Download to read offline and view in fullscreen.

47

Share

Download to read offline

Capital market instruments

Download to read offline

all about capital market instruments

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Capital market instruments

  1. 1. GROUP MEMBERS  Keyur Mota. 33  Ankita Nagap. 34  Manali Nare. 35  Subhakti Palekar. 36  Rupali Palve. 37
  2. 2. CONTENTS          Introduction. Types of capital market instrument Equity share Preference share Debenture Bonds Difference between equity- debt securities Conclusion Reference
  3. 3. INTRODUCTION   The capital market is the market for securities where companies and the government can rise long term fund. It is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds and debentures.
  4. 4. BASIC CAPITAL MARKET INSTRUMENTS
  5. 5. EQUITY SHARES     According to the Companies Act 1956, equity shares are that part of the share capital of the company, which are not preference shares. They are called as ordinary shares or common stock or voting share. These shareholder are the real owner of the company. The return on equity shares depends on the performance profitability of the company.
  6. 6. MERITS OF EQUITY SHARES  A permanent source of finance to the company  No fixed rate of dividend  Easy liquidity and marketability
  7. 7. LIMITATIONS OF EQUITY SHARES  No guarantee on returns to shareholders  Loss of managerial control
  8. 8. PREFERENCE SHARES    Preference shares are known as preferred stock. Preference share capital has two priorities i.e., in the repayment of capital and payment of dividend. Preferred stocks usually carry no voting rigths.
  9. 9. TYPES OF PREFERENCE SHARE
  10. 10. MERITS OF PREFERENCE SHARE CAPITAL From Company’s point of view  Hybrid security  Absence of voting rights  No dilution of control  Fixed return
  11. 11. LIMITATIONS OF PREFERENCE SHARES From Investor ’s point of view  Not secured  Not an attractive investment  No right to participate in the management
  12. 12. DEBENTURES   When a corporation is in need of fund in addition to share capital it borrows money by issuing debentures. The debenture holder gets interest which is fixed at the time of issue.
  13. 13. TYPES OF DEBENTURES Redeemable or irredeemable Convertible or nonconvertible Secured or unsecured Bearer or registered
  14. 14. MERITS OF DEBENTURES  No loss of managerial control  A Flexible source of finance  Reduces burden of tax of the company
  15. 15. LIMITATION OF DEBENTURES  Fixed rate on interest  Companies may have to mortgage their assets  Not an attractive investment from company’s point of view.
  16. 16. BONDS    Bonds are issued by public authorities, credit institutions, companies and super national institutions in the primary market. A bond is a negotiable certificate which entitles the holder of repayment of the principal sum plus interest. The most common process of issuing bonds is through underwriting.
  17. 17. TYPES OF BONDS  Bearer bonds  Registered bonds  Callable bonds  Convertible bonds  Zero coupon bonds  Fixed rate bonds
  18. 18. DIFFERENCE BETWEEN EQUITY SECURITY DEBT SECURITY Owner of the company. Creditor of the company. Get Dividend only when company earns sufficient profits.  . Provides steady in come to the investors. Have voting rights. No voting rights. Not secured. Secured in nature. Share capital of the company. Borrowed capital of the company.
  19. 19. CONCLUSION Capital market plays an important role in ensuring the emergence of a vigorous and efficient economy. It facilitates the internationalization of an economy by linking it with the rest of the world.
  20. 20. REFERENCE BIBLIOGRAPHY   Financial Markets And Financial Services In IndiaBenson Kunjukuju Equity Market-IIAnita Bobade. WEBLIOGRAPHY   www.inc.com/ency clopedia www.martinfowler. com
  • Dhanushv14

    Apr. 20, 2021
  • VirenderRohilla4

    Feb. 22, 2021
  • SagayaMary5

    Feb. 11, 2021
  • AamirNazir17

    Jan. 31, 2021
  • PaimanKhan

    Nov. 13, 2020
  • DharmendraBari

    Nov. 11, 2020
  • amoseanni

    Jun. 30, 2020
  • navdeepkaur239

    Mar. 4, 2020
  • VikasShakya8

    Mar. 1, 2020
  • priyankarao21

    Feb. 7, 2020
  • siddhantjain149

    Jan. 25, 2020
  • MazharShaikh10

    Dec. 7, 2019
  • SHLaskar1

    Nov. 14, 2019
  • ancyrajan3

    Oct. 20, 2019
  • KrishRK5

    Jun. 24, 2019
  • Afsalps2

    May. 30, 2019
  • MonikaCharoliya

    Oct. 26, 2018
  • GouravRB

    Oct. 4, 2018
  • rushithorat

    Sep. 21, 2018
  • tamilselviloganathan

    Sep. 14, 2018

all about capital market instruments

Views

Total views

38,962

On Slideshare

0

From embeds

0

Number of embeds

11

Actions

Downloads

1,537

Shares

0

Comments

0

Likes

47

×