FINANCIAL STRATEGY
 FIXED CAPITAL REQUIREMENT
 WORKING CAPITAL REQUIREMENT
FINANCIAL MARKET
 MONEY MARKET AND CAPITAL MARKET ( FINANCE MARKET)
 PRIMARY MARKET ( NEW COMPANY) AND SECONDARY MARKET (
STOCK MARKET)
 ORGANIZED ( GOVERNED BY RBI )AND UNORGANIZED MARKET
(NOT GOVERNED BY RBI)
 FOREIGN EXCHANGE MARKET (FOREIGN CURRENCIES)
 BROAD, DEEP AND SHALLOW MARKET( NATIONAL ,
INTERNATIONAL LEVEL)
INDIAN CAPITAL MARKET
 GROWTH OF NEW ISSUE MARKET AND STOCK EXCHANGE
 SEBI
 NSE
 DEVELOPMENT OF CREDIT RATING AGENCIES
 MERCHANT BANKING
 INVESTOR SERVICES OF INDIA LIMITED
 ENTRY OF UTI
 FOREIGN INSTITUTIONAL INVESTORS
 MUTUAL FUNDS
METHODS OF ISSUING SECURITIES IN NEW
ISSUE MARKET
 PROSPECTUS
 OFFER FOR SALE
 INITIAL PUBLIC OFFER
 RIGHTS ISSUE
 PRIVATE PLACEMENT
 BONUS ISSUE
 BOOK BUILDING
 STOCK OPTION METHOD
 BOUGHT OUT DEALS
INNOVATIVE SOURCES OF FINANCE
 VENTURE CAPITAL
 SEED CAPITAL
 EURO ISSUES
 LEASE FINANCING
 VENTURE CAPITAL
ASSET BASED SECURITIES
 FINANCIAL SECURITY COLLATERALIZED BY A POOL OF ASSETS
SUCH AS LOANS, LEASES, CREDIT CARD DEBT, ROYALTIES OR
RECEIVABLES
HYBRID SECURITIES
 COMBINATION OF TWO OR MORE FINANCIAL SECURITY /
INSTRUMENTS.
OPTION FINANCING
 LOAN FINANCING : SHORT TERM ( TRADE CREDIT, PUBLIC DEPOSIT,
CUSTOMER CREDIT, ACCRUAL ACCOUNTS, INDIGENOUS BANKERS,
GOVERNMENT ASSISTANCE, FINANCE COMPANIES) LONG TERM
 ON THE BASIS OF RISK – SHARES (OWNED CAPITAL) AND DEBENTURES,
LOANS ( BORROWED CAPITAL)
 ON THE BASIS OF FINANCE – RETAINED EARNINGS & DEPRECIATION(
INTERNAL SOURCE), SECURITIES ( EXTERNAL SOURCE)
 ON THE BASIS OF TIME – LONG TERM CAPITAL, MEDIUM TERM CAPITAL,
SHORT TERM CAPITAL
 ON THE BASIS OF PURPOSE – FIXED CAPITAL & WORKING CAPITAL
WARRANTS , CONVERTIBLE AND
EXCHANGEABLE
 RIGHT AND NOT AN OBLIGATION, TO BUY OR SELL A SECURITY AT
A CERTAIN PRICE BEFORE EXPIRATION.
 TYPES – WARRANT LINKED BOND, WEDDING WARRANTS,
COVERED WARRANTS
COMMERCIAL PAPER
UNSECURED, SHORT TERM LOANS USED BY CORPORATION FOR
FINANCING ACCOUNTS RECEIVABLES AND INVENTORIES.
IT IS ISSUED AT DISCOUNT.
NOT MORE THAN 9 MONTHS
VERY SAFE INVESTMENT
CAN BE INVESTED MORE THAN 1 LAKH

UNIT V- FM (1).pptx

  • 2.
    FINANCIAL STRATEGY  FIXEDCAPITAL REQUIREMENT  WORKING CAPITAL REQUIREMENT
  • 3.
    FINANCIAL MARKET  MONEYMARKET AND CAPITAL MARKET ( FINANCE MARKET)  PRIMARY MARKET ( NEW COMPANY) AND SECONDARY MARKET ( STOCK MARKET)  ORGANIZED ( GOVERNED BY RBI )AND UNORGANIZED MARKET (NOT GOVERNED BY RBI)  FOREIGN EXCHANGE MARKET (FOREIGN CURRENCIES)  BROAD, DEEP AND SHALLOW MARKET( NATIONAL , INTERNATIONAL LEVEL)
  • 4.
    INDIAN CAPITAL MARKET GROWTH OF NEW ISSUE MARKET AND STOCK EXCHANGE  SEBI  NSE  DEVELOPMENT OF CREDIT RATING AGENCIES  MERCHANT BANKING  INVESTOR SERVICES OF INDIA LIMITED  ENTRY OF UTI  FOREIGN INSTITUTIONAL INVESTORS  MUTUAL FUNDS
  • 5.
    METHODS OF ISSUINGSECURITIES IN NEW ISSUE MARKET  PROSPECTUS  OFFER FOR SALE  INITIAL PUBLIC OFFER  RIGHTS ISSUE  PRIVATE PLACEMENT  BONUS ISSUE  BOOK BUILDING  STOCK OPTION METHOD  BOUGHT OUT DEALS
  • 6.
    INNOVATIVE SOURCES OFFINANCE  VENTURE CAPITAL  SEED CAPITAL  EURO ISSUES  LEASE FINANCING  VENTURE CAPITAL
  • 7.
    ASSET BASED SECURITIES FINANCIAL SECURITY COLLATERALIZED BY A POOL OF ASSETS SUCH AS LOANS, LEASES, CREDIT CARD DEBT, ROYALTIES OR RECEIVABLES
  • 8.
    HYBRID SECURITIES  COMBINATIONOF TWO OR MORE FINANCIAL SECURITY / INSTRUMENTS.
  • 9.
    OPTION FINANCING  LOANFINANCING : SHORT TERM ( TRADE CREDIT, PUBLIC DEPOSIT, CUSTOMER CREDIT, ACCRUAL ACCOUNTS, INDIGENOUS BANKERS, GOVERNMENT ASSISTANCE, FINANCE COMPANIES) LONG TERM  ON THE BASIS OF RISK – SHARES (OWNED CAPITAL) AND DEBENTURES, LOANS ( BORROWED CAPITAL)  ON THE BASIS OF FINANCE – RETAINED EARNINGS & DEPRECIATION( INTERNAL SOURCE), SECURITIES ( EXTERNAL SOURCE)  ON THE BASIS OF TIME – LONG TERM CAPITAL, MEDIUM TERM CAPITAL, SHORT TERM CAPITAL  ON THE BASIS OF PURPOSE – FIXED CAPITAL & WORKING CAPITAL
  • 10.
    WARRANTS , CONVERTIBLEAND EXCHANGEABLE  RIGHT AND NOT AN OBLIGATION, TO BUY OR SELL A SECURITY AT A CERTAIN PRICE BEFORE EXPIRATION.  TYPES – WARRANT LINKED BOND, WEDDING WARRANTS, COVERED WARRANTS
  • 11.
    COMMERCIAL PAPER UNSECURED, SHORTTERM LOANS USED BY CORPORATION FOR FINANCING ACCOUNTS RECEIVABLES AND INVENTORIES. IT IS ISSUED AT DISCOUNT. NOT MORE THAN 9 MONTHS VERY SAFE INVESTMENT CAN BE INVESTED MORE THAN 1 LAKH