Mission 2020

The stock market has two main segments. One is the Cash market or Equity Market Segment. The other is the Derivative Market or the F&O Market segment. Cash Market In the cash market segment, traders buy and sell stocks in the present. Cash markets involve immediate delivery and are primarily influenced by supply and demand. The delivery of the share normally takes place in T+2. This means the trade day plus two more business/ working days. The cash market may…

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Debentures, like bonds, are a type of debt instrument that can be issued by a company. It is generally issued to raise medium or long term funds from the public. In the Indian Stock Market, the terms bonds and debentures are interchangeably used.   Main Features of a Debenture A debenture is a debt instrument that acknowledges a loan to the company. It is a movable property. It is a certificate issued under the seal of the company and is…

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What are Bonds? Bonds are fixed income instruments. They are a type of loan taken by companies. They are contractual rights to receive or deliver cash. Very simply, bonds are debt instruments created for the purpose of raising capital. A bond is a loan taken by the company. Owners of bonds, the bondholders, are creditors and the issuer of the bond is the borrower. Investors are actually lending money to the company when they buy its bonds. In exchange, the…

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  Preference shares are a long term source of finance for a company. They have elements of both Equity shares and Debts. Preference shares are those shares of a company with dividends that are paid out first to their shareholders before dividends on equity shares are issued. In other words, these are shares which are preferred over equity shares in payment of surplus or dividend. The preference shareholders have a preferential right to receive dividend at a fixed rate before…

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