commerce

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10/06/2020

treasury bill market-trading of treasury billls

treasury bill-issued by the gov(central govt or state,rbi) for meeting short term money requirement 3types(91(4% isc),1821yr..) this bill is very populr and also has high liquidation

(no interest but discount) no risk !! it is issued only in discount and not by interest sometimes this bill is traded in he secondary market

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11/06/2020

tab basis-issued for original value but sold for discount(profit)

money at call or call money or inter bank dealing:

only for one day very short and for discount

short notice- within 14 days repay time

commercial bill-issued by the commercial org promisory note, discount based,(30,60,90),

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15/06/2020

commercial bill

-the bill is issued by the seller to the buyer

-sign of the buyer

certificate of deposit

-used for raising of money

-also a promisory note

-esily convertible,transfer

-one whos need of money will issue this

-subscrber-the one who is giving money to the issuer

tyes of commercial bill;

demand and usent bill;

-no specific time is mentioned

usent bill time ids metinoned

-if any docs are issued with the commercial bill opposite is clean bill)

inland bill;

-WITHIN THE country

govt securities

characteristics

agencies,rbi special ,safe or gaurantee for payments,easy liquidation,tax icentive or consestions,otc-over the counbter _two segment,participants-central and state govt,secondary market-narrow small and less active,rbi-has office called public debt officd where the securities are issued,notification-notifying the subscriberbefore issuing the security,gooming gradual-gaini,purchase of one security against the sale of one security

gradula-gainig

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18/06/2020

stock market

shares:

-when ur in need of money then u split ur company into various pieces and that is know as shares.

-the person who buys shares from my company is known as shareholders.

-after buying a share he becomes an owner of the company (if ur company has 10 share then 10 owners).

-no kowledge of share amrket then u can have a brok⁷er

-share market where shares are traded

-benifit of shares-the value of the shares you have may go up and when you sell them u may get a good price only if the company has a profit ,sometimes loss can also occur..

-amsterdam stock exchange is the oldest stock exchange and it was established in year 1602 by the dutch east indian company

-new to stock market then

new then primary aldready then secondary

first s.e in india the native shares and stock brokers

recognised by the govt in aug 31 1957

MEA: ALSO KOWN AS STOCK MARKET

trading in securities

systematic manner or rules and regulations

various sevices are offered to investing and borrowing

-for economic development

-it is a platform for corporate or any securities

-duty listed

-a s.e need not be treated as a place of speculation or gambling den

london most popular stock exchange

bobbay oldest stock exchange

-

1.ready and continuous-buy and sell-easy conversion of securities

2.correct evaluation-more demand more value ,easy evaluation

3.protection of investors-investors must be protected from brokers commissions and unwanted expenses and the commission is fixed by the govt.if any mal practice then they will be penalised

4.proper channelisation of money-if u want to invest ur money a.e is the best path and also for capital growth

5.Aid for capital formation-the s.e attracts the investors

The cycle is like saving to s.e to cap growth to economic development

6.insist for speculation - finding wether the value will go up or prediction of value of the security ,very risky becz of speculation the demand and supply are equaliser

Seasoning of securities-The speculator and underwriter will hold the securities on behalf of the newly entered firm and they will hold and the securities only sold when the demand is high.

7.clearing house-this will list the company's list-they will assess the things of your firm like your profits/loss and many various infos....then only they will let you be in the list and only then u are allowed in the s.e

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features of s.e;

1. anyone can enter semi-gov

2.deals in second hand securitiesike shares and debenttures,bond...

3.regulatets trade in securitites the s.e does not buy and sell it providesvariuos facillities\

4.se has two market types primary and seconadry

.facillates the members for the s.e -the buying ans selling must be done only in their personal a/c

6. only when the company is listed in then only company is allowed to invest in

7.anyone can buy and sell when the brokers a re authorised

8.the outsiders and the irect investors are not alowed in e.e

9. stock arket s organised market and it has to be recognised by the central govt

10.can invest in a company ether registerd or not registerred in a partnership.

11.working as per rules and regulationspp

12.onducted and controlled in computerzed.

13.

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24 s.e in india,21 reigonal immature

speculators types:

bull speculator or tejiwalla-he is a positive thinker,he buys the securities in a mindset the he will sell only at a very profitable situation,he always keep the stock market in the peak

bear speculator or mandiwalla-opposite to bull

stack-these speculators select companies whose shares are on high demand ,they apply for shares in new companies,premium is their commision,for the best old compnies ,they are also called as premium hunters

lame duck or wounded duck-the lost bears are the wounded ducks

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pg no 56

recent developement in senat

headed by shree mj firwani

nse-icorporated in november1992,it is screen based- fully computerised ,it is online and orderd driven-where all buyers and sellers display their prices at which they wihs to buy or sell their securities,it uses satellite linkto spread the trading throughout the world

stock holding corp-came into existence in1996 operating in the year 1898,this was started to speed up the trading ,this is meant clearence ad settlement service ,its head quaters in bombay branches in kolkata delhi

all the activities or services from the time of a committment is made for a transaction until it is setteled

counter party risk -if i am buyer the opp party will be seller

credit risk-bad delivery of securities

long delayed delivery

counter fist-forgery docs

securities trading corporation of india set up in the year 1994,