Primary Market

Meaning of Primary Market This denotes the New Issue Market i.e. where the shares are issued for the very first time. In other words, the same was never issued before in the market. Under this, the existing companies and the new entrants can bring new issues. The basic objective is to procure funds from the … Read more

Planning the Capital Structure

Planning the Capital Structure. Planning an appropriate Capital Structure for a company depends upon various parameters and circumstances specific to that company. Deciding on a suitable mix of debt, equity, and other components of ‘Capital Structure’ requires a careful study of those parameters and circumstances. Computation of Working Capital Requirements This assumes more significance in … Read more

Secondary Market

Advantages & Disadvantages of Secondary Market. the secondary market is also known as the ‘after-market’. It refers to the financial market to buy and sell financial instruments and securities which have been previously issued. These financial instruments include stocks, bonds, futures, and options. Functions of Secondary Market   Advantages of Secondary Market The following are the … Read more

Functions of Secondary Market

Functions of Secondary Market. The secondary market is also known as the ‘after-market’. It refers to the financial market to buy and sell financial instruments and securities which have been previously issued. These financial instruments include stocks, bonds, futures, and options. The term also refers to the market for any previously used assets or goods. … Read more

Computation of Working Capital Requirements

working capital Requirements

Computation of Working Capital Requirements.A company must be able to assess its working capital requirement appropriately for the hassle-free conduct of business. Bifurcation of the working capital into ‘Permanent Working Capital’ and ‘Temporary Working Capital’ would follow after that, which enables the business entity to take a decision regarding the level of working capital to … Read more

Intermediaries in Secondary Market

Intermediaries in Secondary Market

Intermediaries in the Secondary Market. The secondary market is also known as the ‘after-market’. It refers to the financial market to buy and sell financial instruments and securities which have been previously issued. These financial instruments include stock, bonds, futures, and options. other names for such markets are Stock market or Stock Exchange. Following are … Read more

NABARD | Function and working of NABARD

NABARD. National Bank for Agriculture and Rural Development (NABARD)  was set up pursuant to the recommendations made by the Committee to Review Arrangements for Institutional Credit for Agriculture and Development (CRAFICARD). It was set up on July 12, 1982. The main purpose of NABARD was to te cohesive rural growth and to ensure the provision of … Read more

Structure of Indian Financial System.

structure-of-Indian-financial-system

Structure of Indian Financial System. There are four segments or components of the Indian financial system. These are financial institutions, financial markets, financial instruments, and financial services. The structure of the financial system in an economy is shown in the figure below. 1) Indian financial Institutions Indian financial institutions. Different kinds of organizations that act … Read more

Life Insurance and products by life insurers

A life insurance contract is a contract where the insurer agrees to pay the premium in lumpsum or in the periodic form to the assured or to another beneficial person at the decided amount either on the death of the insured or on the expiry of a specified period of time. Different Products Offered by … Read more

Mutual Funds and Their Types

Mutual fund

Mutual Funds and Their Types. A Mutual fund is a pool of money representing the saving made by a number of investors. The funds so collected are managed by professionals by investing in equity as well as debt instruments like stocks, debentures, bonds, money markets, and other financial instruments. The job of the fund manager … Read more