capital markets

Topics: Stock exchange, Financial markets, Stock market Pages: 45 (9580 words) Published: September 30, 2014
1. A PROJECT ON CAPITAL MARKET

MASTER OF BUSINESS ADMINISTRATION
A STUDY ON
Capital Markets

A Mini Project Report submitted to
DEPARTMENT OF MANAGEMENT STUDIES

SRI VAISHNAVI COLLEGE OF ENGINEERING

Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA
Singupuram- Vill & Post, Srikakulam (Rural) - Mandal
Srikakulam

Submitted By

Under the guidance of
Mr. B. UPENDRA RAO M.B.A (Ph.D)
Asst.professor, Head Dept. of Management Studies

SRI VAISHNAVI COLLEGE OF ENGINEERING

CERTIFICATE
This is to certify that the mini Project Report entitled “Capital markets-Growth” submitted in partial fulfillment of the internal programme in MASTER OF BUSINESS ADMINISTRATION Degree of JNTU, Kakinada was carried out by under my guidance and supervision. He has been sincere, dedicated and his conduct throughout the study has been excellent.

Place : HOD Date: Mr. B. UpendrA

Index

SerialParticulars
Page
No.
No.

Capital market

Role of capital market in India

Factors affecting capital market in India

India stock exchange overview

Capital market efficiency

6 Suggestions

CAPITAL MARKETS

Companies and governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. A nation's capital market includes such financial institutions as banks, insurance companies, and stock exchanges that channel long-term investment funds to commercial and industrial borrowers. Unlike the money market, on which lending is ordinarily short term, the capital market typically finances fixed investments like those in buildings and machinery.

Nature and Constituents:

The capital market consists of number of individuals and institutions (including the government) that canalize the supply and demand for long-term capital and claims on capital. The stock exchange, commercial banks, co-operative banks, saving banks, development banks, insurance companies, investment trust or companies, etc., are important constituents of the capital markets.

The capital market, like the money market, has three important

Components, namely the suppliers of loanable funds, the borrowers and the Intermediaries who deal with the leaders on the one hand and the Borrowers on the other.

The demand for capital comes mostly from agriculture, industry, trade The government. The predominant form of industrial organization developed Capital Market becomes a necessary infrastructure for fast industrialization. Capital market not concerned solely with the issue of new claims on capital, But also with dealing in existing claims.

Debt or Bond market

The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds. As of 2009, the size of the worldwide bond market (total debt outstanding) is an estimated $82.2 trillion [1], of which the size of the outstanding U.S. bond market debt was $31.2 trillion according to BIS (or alternatively $34.3 trillion according to SIFMA).

Nearly all of the $822 billion average daily trading volume in the U.S. bond market takes place between broker-dealers and large institutions in a decentralized, over-the-counter (OTC) market. However, a small number of bonds, primarily corporate, are listed on exchanges.

References to the "bond market" usually refer to the government bond market, because of its size, liquidity, lack of credit risk and, therefore, sensitivity to interest rates. Because of the...
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