IIBF JAIIB FREE Principles and Practices of Banking Notes Chapter – 4: CAPITAL MARKET
In this PPB short note for the MAY 2024 Exams, we are going to provide the important topics from Chapter 4 of the PPB MAY EXAM 2024 as per the prescribed JAIIB syllabus MAY 2024. And if you are also among the JAIIB Candidates who are going to write this JAIIB PPB MAY Exam 2024, then you must cover the Capital Market topic of Principles & practices of Banking paper at least.
Then you will find the PPB’s Latest applicable Study Material for the MAY 2024 Attempt at the end of this article.
Short Notes on PPB Chapter – 4: CAPITAL MARKET
CAPITAL MARKET: It is a market where securities such as Shares, Bonds & Debentures are traded i.e. purchased and sold. While shares (Both Equity as well as Preference) are dealt in Equity Market while Debentures & Bonds are dealt with in the Debt Market. SEBI is regulator of Capital Market. The capital Market has been categorized into 2 types:
- PRIMARY MARKET: The market where the securities are sold by the Company directly under Public issue (IPO) or private placement is called as Primary Market.
- SECONDARY MARKET: The market where securities are traded through the Stock Exchanges is called a Secondary Market. For companies that are listed in Stock Exchange(s) & the sale is made through auction. It also includes OTC (Over Counter market) through which Futures of securities are dealt with through dealers.
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Below is some of the information that is available in regard to the capital market which you must keep in your mind as a current update in regard to the capital market:
|There are currently 9 Stock Exchanges in India, namely:
1. BSE Ltd.
2. India International Exchange (India INX)
3. National Stock Exchange of India Ltd.
4. Indian Commodity Exchange Limited
5. Calcutta Stock Exchange Ltd.
6. Multi Commodity Exchange of India Ltd.
7. Metropolitan Stock Exchange of India Ltd.
8. National Commodity & Derivatives Exchange Ltd.
9. NSE IFSC Ltd.
National Stock Exchange, in short NSE, was started in year 1992 by banks and Financial Institutions.
What is Sensex 30?
It is Sensitive Index that has been launched by BSE which is market capitalization-weighted index of 30 Stocks (Shares) that represents large & sound Indian Companies (the 30 companies get updated on a quarterly basis)
What is Nifty 50?
It is Sensitive Index that has been launched by NSE which is market capitalization weighted index of 50 Stocks (Shares) representing large and sound Indian Co’s.
|Shares, Debentures & Bonds
IPO: It is an initial public offer by the Company through which it invites public to subscribe for shares.
FPO: It is called as Further public offer where an offer is made to subscribe for the same class of shares.
Right Issue: It means an Offer of shares made to the existing shareholders for purchase at a price for the same class of share that has already been issued.
Bonus Share: It is the type of share that is issued to existing shareholders without receiving their price i.e. free of cost.
Preference Shares: The preference share owners are entitled to fixed dividends on their preference shares (if they are cumulative). Dividend is paid to them first. They also get priority over Equity shares in repayment of their dues at liquidation time. Preference Shares are of following types:
1. Cumulative & Non-Cumulative Preference Shares
2. Redeemable & non-redeemable Preference Shares
3. Participating & non-participating Preference Shares
4. Convertible & non-convertible Preference Shares
|Debentures and Bonds
|Debentures and Bonds are the constituents of the Debt Market.
|Commercial Papers & Certificates of Deposit
|Commercial Papers (CPs):
Certificate of Deposit (CD):
LATEST JAIIB EXAM STUDY MATERIAL FOR MAY 2024
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