investment market fundamentals

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Market FundamentalsAn Introduction

By: Samsher Rathore

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Presentation Outline

 Types of Business Ownership

Acquiring Capital

Public markets

Market capitalization

Small cap

Mid cap

Large cap

Money Market

Debt Market

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Form of BusinessOwnershi

Proprietorship

Partnership

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Acquiring Capital

Board of Directors

Shares and share holders

Bonds

Private placement

Initial Public Offering (IPO)

Dematerialization

Dividend

Bonds vs. Shares

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Bonds vs. Shares

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Public Markets

Primary Market

Secondary Market

Stock exchangeNSE

BSE

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Market Capitalization

 Total market value of a company on a stock

exchange

Small cap

Mid cap

Market capitalization

= [Company’s share price] × [ No. of share issued in the market]

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Small cap

Market capitalization $300 mn to $2 bn

High risk and high returns

Newly established companies

 The management is relatively inexperienced

 Their growth and performance is purely depends upon client

acquisitions

 They have huge potential for explosive growth

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Large cap

Market capitalization- $10 bn and greater

Low risk and moderate to low returns

Well-established companies with well reputed

promoters

Have professional top management with an excellent

track record

Wide availability of information about the company

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Money Market

A market for short term securities

Money Market securities are highly liquid

It is consist of financial institutions and dealers of 

money or credit who wish to either borrow or lend

Money market securities: Commercial Papers(CP),

 Treasury Bills (T-Bills), Certificate of Deposits(CD),

Money funds etc.

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Debt Market

A market for debt securities

Debt securities: Govt. bonds, corporate Bonds,

Certificates of Deposits etc

It is consist of institutional investors, government,

traders, and other individuals

Market volatility is irrelevant to the stock market

Provides safe investment

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