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Securities. What is Securities Shares,Stocks,Debentures Bonds,Marketable Securities Interest or dividend from securities Issued by Body Corporate Government. Securities - Types. Organised Unorganised Organised Securities Loans from Banks,FI Unorganised
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Securities What is Securities • Shares,Stocks,Debentures • Bonds,Marketable Securities • Interest or dividend from securities • Issued by Body Corporate • Government
Securities - Types • Organised • Unorganised • Organised Securities Loans from Banks,FI • Unorganised Money Lenders Indigenous Bankers
Securities - Actors Regulators • Department of Company Affairs • Stock Exchanges • SEBI • Merchant Bankers
Securities - Assets • Types of Assets: • Physical Assets Real Estate,Gold,Silver,Commodities • Financial Assets Shares,Bonds,Debentures,Mutual Funds,Interest on securities etc
Shares • What is a Share -Share Represents Ownership Capital • Types of Shares - Equity Shares - Preference Shares • What is Equity Share - Represents the Owners Funds
Preference Share • What is a Preference Share Represents owners with priority to get Dividend and Repayment of Capital Types of Preference Shares. • Cumulative • Non Cumulative • Participating Preference Shares • Redeemable Preference Shares
Markets • Primary Market Where the securities are issued for the first time by company,Govt etc. • Secondary Market Where the existing securities are actively bought and sold.
Markets Primary Market • Public Issue, Rights Issue,private placement • Secondary Market Buying and selling of shares,Debentures,Bonds,
Listing • What is Listing - Listing is putting the Company Name in the Stock Exchange. It helps the company shares to be bought and sold • How to Buy Shares & Sell Shares - Shares can be bought and sold through an intermediary or a person called Broker. A Broker can be an individual person of firm
Investors • Who is an Investor - A person who buys shares and keeps it with him to sell after a certain period. The object is to make profit on selling. • How shares are held by an Investor - Shares can be held in the form of a physical certificate called Share Certificate or in an electronic form called as Demat.
Key Investor Points • Points to be taken care of by an Investor - Know the Company and its promoters - Know the related Companies. - Profitability for the Last 3 Years - Dividend payment for the last 3 years - Key Ratios - Sensitive Market News (Subjective)
BP, EPS, PE • Book Profit Ratio= Share Capital +Reserves/Total number of shares in the company. • Earning per Share(EPS)= Net profit/Total number of shares in the company. • PE Ratio= Market price of the share/EPS