
The capital market mobilizes resources and enables price discovery and settlement, differentiating primary markets for new issues like IPOs and listings from secondary markets where investors trade existing securities.
Contrast public and private companies, noting that public firms may issue a prospectus and invite the public, with options like private placement, rights issue, and bonus issue.
Learn how book building, as a price discovery method, governs IPO bid collection, cumulative demand, price ranges, cutoff price, and allotment decisions.
Understand the three investor categories—retail investors, non-institutional investors, and qualified institutional buyers (QIBs)—with examples such as banks, mutual funds, FIIs, pension funds, and provident funds.
Rights issues provide existing shareholders with a preemptive right to subscribe to additional shares at a price below market value, raising capital non-dilutively.
Define buyback as the reacquisition of a company's own securities, returning money to investors; globally, shares may be held as treasury stock or extinguished, with India following the extinguish approach.
Infosys carried out a 2019 open-market buyback at Rs 800 per share, buying about 10.3 crore shares (14.5% of paid-up capital and free reserves) with face value Rs 5.
Explore debentures as long-term debt instruments, including trustee, secured and unsecured forms, bearer and registered, redeemable or non-redeemable, with low cost of capital and tax-deductible interest, versus preference shares.
Study how stock market indices track overall performance and signal future returns. See Dow Jones, FTSE, Sensex, and Nifty examples and note their sensitivity to company and country news.
Identify the main types of future contracts, including currency futures, index futures, commodity futures, and interest rate futures.
Explore how a call option works, including strike price of 270, premium costs, and exercise versus lapse scenarios, illustrating profits when prices rise and losses limited to premium.
Shows the put option payoff with a 40 strike, 5 premium, breakeven at 35, and notes the mirror image of a long call.
Learn key bond terms such as face value (par), coupon rate and semiannual interest, issue price versus market price, and maturity and redemption value, including potential convertibility to shares.
Compare direct investing, where individuals pick stocks, with indirect investing through a fund manager who pools money into a mutual fund; returns go to unit holders as income and appreciation.
Capital markets are where savings and investments are channeled between suppliers and those in need. Suppliers are people or institutions with capital to lend or invest and typically include banks and investors. Those who seek capital in this market are businesses, governments, and individuals. Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market. They seek to improve transactional efficiencies by bringing suppliers together with those seeking capital and providing a place where they can exchange securities.
Capital markets refer to the venues where funds are exchanged between suppliers and those who seek capital for their own use.
Suppliers in capital markets are typically banks and investors while those who seek capital are businesses, governments, and individuals.
Capital markets are used to sell different financial instruments, including equities and debt securities.
These markets are divided into two categories: primary and secondary markets.
The best-known capital markets include the stock market and the bond markets.
The term capital market is a broad one that is used to describe the in-person and digital spaces in which various entities trade different types of financial instruments. These venues may include the stock market, the bond market, and the currency and foreign exchange (forex) markets. Most markets are concentrated in major financial centers such as New York, London, Singapore, and Hong Kong.
This course is a self study course. The course should be studied in full to understand all the aspects. This course serves as a beginners guide to capital markets.