TOPICS OF DISCUSSION IN CAPITAL MARKET : Share Capital
Share
Preference Share
Equity Share
Process of Issue Share (IPO)
Stock Exchange
Sensex
Nifty TOPICS OF DISCUSSION IN CAPITAL MARKET
TOPIC ONE : TOPIC ONE SHARE CAPITAL: Generally the capital word is used for that amount which is brought by owner in the business . So the Share Capital means the amount which is brought by the owner or investor in the form of shares.
TOPIC TWO : TOPIC TWO Share: The public company capital is divided into small parts and that each part is called share. For example: A ltd. Company’s capital is Rs1000000 and which is divided in 100000 part of Rs10 each. Then this each part is called share. Share can be divided in two types:
Preference Share
Equity Share
TOPIC THREE : TOPIC THREE Preference Share: Preference share are those share which have two preference right over the equity shares.
First at the time of dividend, they will get the dividend before the equity shareholder. It means the equity shareholder get the dividend after the preference shareholder if any profit remain in the company.
TOPIC THREE : TOPIC THREE Second at the time winding-up the company, they will get the their capital before the equity shareholder. It means the equity shareholder get the their invested amount after the preference shareholder if any amount remain in the company.
Preference shares are the following types:
Convertible Preference Shares
Non-Convertible Preference Shares
TOPIC THREE : TOPIC THREE Cumulative Preference Shares
Non- Cumulative Preference Shares
Participation Preference Shares
Non- Participation Preference Shares
Redeemable Preference Shares
Non-Redeemable Preference Shares
TOPIC FOUR : TOPIC FOUR Equity Share: Equity shares are those shares which do not have any preference. These shares are also called ordinary shares because generally we used the word shares for equity shares. The holder of these shares are called equity shareholder. They are the real owner of the company because all the risk bear by them. They also have voting right and can participate in management.
TOPIC FIVE : TOPIC FIVE Process of Issue Share: The company which need the finance and want to raise money through the shares used the following process, which is also called the IPO (Initial Public Offer).
Prospectus
Receive Applications with Application Money
Make Allotment
Make Calls
TOPIC SIX : TOPIC SIX Stock Exchange: Stock Exchange is that place where shares can be bought and sold. It means we exchange the shares to each other in the consideration of some amount. When we sold the shares we receive the amount and when we bought the shares we have to pay the amount. In India there are many stock exchanges but the famous one now only two that is BSE & NSE. BSE means BOMBAY STOCK EXCHANGE & NSE means NATIONAL STOCK EXCHANGE
TOPIC SEVEN : TOPIC SEVEN Sensex: We heard the word index many times. Index is the indicator that show us the direction of any thing. Same way the sensex is index of BSE, in which 30 shares included. That shows us them share market is going in which direction upward or downward. But it doesn’t mean that these 30 shares have same weightage in the index. For example in India Reliance Industry has great weightage in both sensex and nifty.
TOPIC EIGHT : TOPIC EIGHT Nifty: Nifty is the index of NATIONAN STOCK EXCHANGE, in which 50 stocks are included. That is most common and popular stock exchange in India. 1016 companies are listed in this exchange.
Both these stock exchange are situated in Mumbai,