SlideShare une entreprise Scribd logo
1  sur  18
Télécharger pour lire hors ligne
Primary and
Secondary Markets
By: Anurag Kinger
101086002
ECE-2
Agenda
 Capital Market
 Primary Market
 Features of Primary market
 Secondary Market
 Features of Secondary Market
 Conclusion
CAPITAL MARKET
 The market where investment instruments like
bonds, equities and mortgages are traded is
known as the capital market.
 The primal role of this market is to make
investment from investors who have surplus
funds to the ones who are running a deficit.
 The capital market offers both long term and
overnight funds.
 The different types of financial instruments
that are traded in the capital markets are:
> equity instruments
> credit market instruments,
> insurance instruments,
> foreign exchange instruments,
> hybrid instruments and
> derivative instruments.
Importance of Capital Markets
 Help firms and governments raise cash by selling
securities
 Allow investors with excess funds to invest and earn a
return
 Channel funds from savers to borrowers
 Allocate resources optimally (i.e., provide funds to those
who can make the best use of them)
 Help allocate cash to where it is most productive
 Help lower the cost of exchange
 Secondary markets, where investors trade existing
securities, assures investors that they can quickly sell
their securities if the need arises
Types of capital market
There are two types of capital market:
 Primary market,
 Secondary market
Primary Market
 It is that market in which
shares, debentures and other securities are
sold for the first time for collecting long-
term capital.
 This market is concerned with new issues.
Therefore, the primary market is also called
NEW ISSUE MARKET.
 In this market, the flow of funds is from savers
to borrowers (industries), hence, it helps directly
in the capital formation of the country.
 The money collected from this market is
generally used by the companies to modernize
the plant, machinery and buildings, for
extending business, and for setting up new
business unit.
Features of Primary Market
 It Is Related With New Issues
 It Has No Particular Place
 It Has Various Methods Of Float Capital: Following
are the methods of raising capital in the primary
market:
i) Public Issue
ii) Offer For Sale
iii) Private Placement
iv) Right Issue
v) Electronic-Initial Public Offer
 It comes before Secondary Market
 Initial public offering (IPO) The first sale of a
company’s stock to the general public.
 Investment bankers Financial specialists who handle
the sales of most corporate and municipal securities.
 Underwriting Process of purchasing an issue from a
firm or government and then reselling the issue to
investors.
Factors to be considered by Investors
 Promoters Credibility
 Project Details
 Product
 Financial data
 Risk factors
 Auditors report
Secondary Market
 The secondary market is that
market in which the buying and
selling of the previously issued
securities is done.
 The transactions of the secondary
market are generally done through
the medium of stock exchange.
 The chief purpose of the secondary
market is to create liquidity in
securities.
 If an individual has bought some
security and he now wants to sell it, he
can do so through the medium of stock
exchange to sell or purchase through
the medium of stock exchange requires
the services of the broker
presently, their are 24 stock exchange
in India.
.
Features of Secondary Market
 It Creates Liquidity
 It Comes After Primary Market
 It Has A Particular Place
 It Encourage New Investments
 Aids in financing the industry
 Ensures safe & fair Dealing( MEDIA
BROADCASTING)
Functions of Secondary Markets
 Provides regular information about the value of
security.
 Helps to observe prices of bonds and their interest
rates.
 Offers to investors liquidity for their assets.
 Secondary markets bring together many interested
parties.
 It keeps the cost of transactions low.
Famous Secondary Markets worldwide
 New York Stock Exchange
 NASDAQ
 The London Stock Exchange
 The Tokyo Stock Exchange
 Shanghai Stock Exchange
PRIMARY
MARKET
SECONDARY
MARKET
Thank you

Contenu connexe

Tendances (20)

Capital market ppt
Capital market pptCapital market ppt
Capital market ppt
 
secondary market ppt.
secondary market ppt.secondary market ppt.
secondary market ppt.
 
Capital market
Capital marketCapital market
Capital market
 
Derivative market in india
Derivative market in indiaDerivative market in india
Derivative market in india
 
Financial markets
Financial marketsFinancial markets
Financial markets
 
Capital Market
Capital MarketCapital Market
Capital Market
 
money market and capital market
money market and capital marketmoney market and capital market
money market and capital market
 
Money market
Money marketMoney market
Money market
 
Forward and futures - An Overview
Forward and futures - An OverviewForward and futures - An Overview
Forward and futures - An Overview
 
Money market instruments
Money market instrumentsMoney market instruments
Money market instruments
 
Money market & its instruments
Money market & its instrumentsMoney market & its instruments
Money market & its instruments
 
Venture capital- meaning, stages ad process
Venture capital- meaning, stages ad process Venture capital- meaning, stages ad process
Venture capital- meaning, stages ad process
 
Brief Introduction on Indian financial markets
Brief Introduction on Indian financial marketsBrief Introduction on Indian financial markets
Brief Introduction on Indian financial markets
 
Swaps
SwapsSwaps
Swaps
 
Capital market instrument
Capital market instrumentCapital market instrument
Capital market instrument
 
Secondary Markets
Secondary MarketsSecondary Markets
Secondary Markets
 
Introduction to capital markets
Introduction to capital marketsIntroduction to capital markets
Introduction to capital markets
 
Merchant banking
Merchant banking Merchant banking
Merchant banking
 
FINANCIAL MARKET
FINANCIAL MARKETFINANCIAL MARKET
FINANCIAL MARKET
 
Mutual funds ppt
Mutual funds pptMutual funds ppt
Mutual funds ppt
 

En vedette (20)

Primary market
Primary marketPrimary market
Primary market
 
Primary market
Primary marketPrimary market
Primary market
 
Initial public offer
Initial public offerInitial public offer
Initial public offer
 
Merchant banker
Merchant bankerMerchant banker
Merchant banker
 
Indian money market and role of rbi
Indian money market and role of rbiIndian money market and role of rbi
Indian money market and role of rbi
 
Primary & secondary data
Primary & secondary dataPrimary & secondary data
Primary & secondary data
 
Tourism Destination Marketing Part One
Tourism Destination Marketing Part OneTourism Destination Marketing Part One
Tourism Destination Marketing Part One
 
Destination marketing
Destination marketingDestination marketing
Destination marketing
 
Sport tourism
Sport tourismSport tourism
Sport tourism
 
Difference between primary and secondary data
Difference between primary and secondary dataDifference between primary and secondary data
Difference between primary and secondary data
 
Securities market
Securities marketSecurities market
Securities market
 
Money Market Ppt
Money Market PptMoney Market Ppt
Money Market Ppt
 
Primary and sec data
Primary and sec dataPrimary and sec data
Primary and sec data
 
Primary and Secondary Markets
Primary and Secondary MarketsPrimary and Secondary Markets
Primary and Secondary Markets
 
PRIMARY AND SECONDARY MARKET
PRIMARY AND SECONDARY MARKETPRIMARY AND SECONDARY MARKET
PRIMARY AND SECONDARY MARKET
 
Secondary Market
Secondary MarketSecondary Market
Secondary Market
 
Secondary market
Secondary marketSecondary market
Secondary market
 
Capital Market - Structure
Capital Market - StructureCapital Market - Structure
Capital Market - Structure
 
Ppt on depository system in india
Ppt on depository system in indiaPpt on depository system in india
Ppt on depository system in india
 
Capital market instruments
Capital market instrumentsCapital market instruments
Capital market instruments
 

Similaire à Primary and Secondary Markets

Pptmoney 130806124011-phpapp01 - copy
Pptmoney 130806124011-phpapp01 - copyPptmoney 130806124011-phpapp01 - copy
Pptmoney 130806124011-phpapp01 - copyNisha Verma
 
Primary and secondary market (bus.finance)
Primary and secondary market (bus.finance)Primary and secondary market (bus.finance)
Primary and secondary market (bus.finance)salman Tariq
 
capital marketing about all businesses and assets
capital marketing about all businesses and assetscapital marketing about all businesses and assets
capital marketing about all businesses and assetsWenaReyes1
 
Investment management
Investment managementInvestment management
Investment managementSaran Nagu
 
Introduction to global financial markets
Introduction to global financial marketsIntroduction to global financial markets
Introduction to global financial marketsCPTECUniversity
 
Financial market
Financial marketFinancial market
Financial marketmari muthu
 
Financial markets and services notes
Financial markets and services notesFinancial markets and services notes
Financial markets and services notesMadhu Shree
 
Financial markets and institutions
Financial markets and institutionsFinancial markets and institutions
Financial markets and institutionsSunil Kumar
 
Capital market - sample presentation
Capital market - sample presentationCapital market - sample presentation
Capital market - sample presentationGayathriselvaraj19
 

Similaire à Primary and Secondary Markets (20)

What is Capital Market?
What is Capital Market?What is Capital Market?
What is Capital Market?
 
Pptmoney 130806124011-phpapp01 - copy
Pptmoney 130806124011-phpapp01 - copyPptmoney 130806124011-phpapp01 - copy
Pptmoney 130806124011-phpapp01 - copy
 
Capital market
Capital marketCapital market
Capital market
 
Capital market
Capital marketCapital market
Capital market
 
Primary and secondary market (bus.finance)
Primary and secondary market (bus.finance)Primary and secondary market (bus.finance)
Primary and secondary market (bus.finance)
 
Capital market ppt
Capital market pptCapital market ppt
Capital market ppt
 
capital marketing about all businesses and assets
capital marketing about all businesses and assetscapital marketing about all businesses and assets
capital marketing about all businesses and assets
 
Investment management
Investment managementInvestment management
Investment management
 
Finanmcial market ppt
Finanmcial market pptFinanmcial market ppt
Finanmcial market ppt
 
Introduction to global financial markets
Introduction to global financial marketsIntroduction to global financial markets
Introduction to global financial markets
 
Financial market
Financial marketFinancial market
Financial market
 
Financial markets and services notes
Financial markets and services notesFinancial markets and services notes
Financial markets and services notes
 
Financial markets and institutions
Financial markets and institutionsFinancial markets and institutions
Financial markets and institutions
 
Capital Market
Capital MarketCapital Market
Capital Market
 
Capital market
Capital marketCapital market
Capital market
 
Financial management
Financial managementFinancial management
Financial management
 
Capital market
Capital marketCapital market
Capital market
 
Capital market
Capital marketCapital market
Capital market
 
Capital market - sample presentation
Capital market - sample presentationCapital market - sample presentation
Capital market - sample presentation
 
Security market
Security marketSecurity market
Security market
 

Dernier

2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptxSandy Millin
 
Presentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphPresentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphNetziValdelomar1
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
Patterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxPatterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxMYDA ANGELICA SUAN
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxDr. Asif Anas
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxKatherine Villaluna
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapitolTechU
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17Celine George
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxraviapr7
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17Celine George
 

Dernier (20)

2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
 
Presentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphPresentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a Paragraph
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
Prelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quizPrelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quiz
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
Patterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptxPatterns of Written Texts Across Disciplines.pptx
Patterns of Written Texts Across Disciplines.pptx
 
Ultra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptxUltra structure and life cycle of Plasmodium.pptx
Ultra structure and life cycle of Plasmodium.pptx
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptx
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptx
 
How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17How to Make a Field read-only in Odoo 17
How to Make a Field read-only in Odoo 17
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptx
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17
 

Primary and Secondary Markets

  • 1. Primary and Secondary Markets By: Anurag Kinger 101086002 ECE-2
  • 2. Agenda  Capital Market  Primary Market  Features of Primary market  Secondary Market  Features of Secondary Market  Conclusion
  • 3. CAPITAL MARKET  The market where investment instruments like bonds, equities and mortgages are traded is known as the capital market.  The primal role of this market is to make investment from investors who have surplus funds to the ones who are running a deficit.
  • 4.  The capital market offers both long term and overnight funds.  The different types of financial instruments that are traded in the capital markets are: > equity instruments > credit market instruments, > insurance instruments, > foreign exchange instruments, > hybrid instruments and > derivative instruments.
  • 5. Importance of Capital Markets  Help firms and governments raise cash by selling securities  Allow investors with excess funds to invest and earn a return  Channel funds from savers to borrowers  Allocate resources optimally (i.e., provide funds to those who can make the best use of them)  Help allocate cash to where it is most productive  Help lower the cost of exchange  Secondary markets, where investors trade existing securities, assures investors that they can quickly sell their securities if the need arises
  • 6. Types of capital market There are two types of capital market:  Primary market,  Secondary market
  • 7. Primary Market  It is that market in which shares, debentures and other securities are sold for the first time for collecting long- term capital.  This market is concerned with new issues. Therefore, the primary market is also called NEW ISSUE MARKET.
  • 8.  In this market, the flow of funds is from savers to borrowers (industries), hence, it helps directly in the capital formation of the country.  The money collected from this market is generally used by the companies to modernize the plant, machinery and buildings, for extending business, and for setting up new business unit.
  • 9. Features of Primary Market  It Is Related With New Issues  It Has No Particular Place  It Has Various Methods Of Float Capital: Following are the methods of raising capital in the primary market: i) Public Issue ii) Offer For Sale iii) Private Placement iv) Right Issue v) Electronic-Initial Public Offer  It comes before Secondary Market
  • 10.  Initial public offering (IPO) The first sale of a company’s stock to the general public.  Investment bankers Financial specialists who handle the sales of most corporate and municipal securities.  Underwriting Process of purchasing an issue from a firm or government and then reselling the issue to investors.
  • 11. Factors to be considered by Investors  Promoters Credibility  Project Details  Product  Financial data  Risk factors  Auditors report
  • 12. Secondary Market  The secondary market is that market in which the buying and selling of the previously issued securities is done.  The transactions of the secondary market are generally done through the medium of stock exchange.  The chief purpose of the secondary market is to create liquidity in securities.
  • 13.  If an individual has bought some security and he now wants to sell it, he can do so through the medium of stock exchange to sell or purchase through the medium of stock exchange requires the services of the broker presently, their are 24 stock exchange in India. .
  • 14. Features of Secondary Market  It Creates Liquidity  It Comes After Primary Market  It Has A Particular Place  It Encourage New Investments  Aids in financing the industry  Ensures safe & fair Dealing( MEDIA BROADCASTING)
  • 15. Functions of Secondary Markets  Provides regular information about the value of security.  Helps to observe prices of bonds and their interest rates.  Offers to investors liquidity for their assets.  Secondary markets bring together many interested parties.  It keeps the cost of transactions low.
  • 16. Famous Secondary Markets worldwide  New York Stock Exchange  NASDAQ  The London Stock Exchange  The Tokyo Stock Exchange  Shanghai Stock Exchange