This book focuses on the markets for securities. It defines and classifies financial securities and explains how and where they are issued, purchased and traded. Along with the spot market, the mechanism of the derivative market is also described in detail. The textual presentation is supplemented by appropriate tables and diagrams with data from authentic sources.
The book will be useful for the beginners in financial economics and especially those who are pursuing their management or financial economics courses at undergraduate or postgraduate level such as B.Com., BBA, M.Com., and MBA and professional courses like CA and CS.
The financial market practitioners and investors will also find it useful as it explains the features of varieties of securities along with their associated risks and returns. The microeconomic and macroeconomic factors that need to be considered while investing in securities such as stocks and bonds have also been discussed elaborately in this book.
Contents –
Chapter 1 STRUCTURE OF THE FINANCIAL MARKET
1.1 Financial Assets and Financial Markets
1.2 Money Market and Capital Market
1.3 Cash Market and Derivative Market
1.4 Organised Market and Unorganised Market
Chapter 2 MONEY MARKET
2.1 Call Money
2.2 Commercial Bill
2.3 Treasury Bill
2.4 Repurchase Agreement (REPO)
2.5 Commercial Paper (CP)
2.6 Certificate of Deposit (CD)
2.7 Money Market Mutual Fund (MMMF)
Chapter 3 STOCK MARKET
3.1 Joint Stock Company
3.2 Equity Share and Preference Share
3.3 Market for Shares
3.3.1 Primary Market
3.3.2 Secondary Market
3.4 Share Price and Share Price Indices
3.5 Stock Market and Mutual Funds
3.6 Stock Market and Foreign Investment
3.7 Stock Market and the Economy
Annexure
Chapter 4 DETERMINANTS OF SHARE PRICES: THE ROLE OF FORECASTING
4.1 Fundamental Analysis
4.1.1 Economy Factors
4.1.2 Industry Factors
4.1.3 Company Factors
4.1.4 Limitations of Fundamental Analysis
4.2 Technical Analysis
4.2.1 General Market Analysis
4.2.2 Individual Stock Analysis
4.3 Evaluation of the Forecasting Methods
4.4 Efficient Market Hypothesis
Chapter 5 BOND MARKET
5.1 Return from Bond
5.2 Risks in Bonds
5.3 Stocks and Bonds: Risk Comparison
5.4 Market for Bonds
5.4.1 G-secs Market
5.4.2 Debenture Market
Chapter 6 DERIVATIVE MARKET
6.1 Option
6.1.1 Call Option
6.1.2 Put Option
6.1.3 Settlement of Trade: Cash Settlement vs Physical Settlement
6.1.4 Margin Requirement
6.1.5 Uses of Options
6.2 Forward
6.3 Future
6.3.1 Asset Price and Future Price: Convergence
6.3.2 Forward and Future: Outcomes
6.3.3 Uses of Futures: Speculation and Hedging
6.4 Index Future
6.5 Swap
6.6 International Derivative Market
6.7 Derivative Market in India