This presentation is about PRIMARY MARKET.

1. PRIMARY MARKET

2. INDEX
• INTRODUCTION
• IPO
• FPO
• PRIVATE PLACEMENT
• OFFER FOR SALE
• RIGHTS ISSUE
• BONUS ISSUE
• STOCK OPTION
• FOREIGN CAPITAL ISSUANCE
• CONCLUSION
• BIBLIOGRAPHY

3. STUFF
LIABILITY ASSET

4. INTRODUCTION
• The primary market is the part of the capital market that
deals with issuing of new securities. Companies,
governments or public sector institutions can obtain funds
through the sale of a new stock or bond issues through
primary market. This is typically done through
an investment bank or finance syndicate of securities
dealers.
• The process of selling new issues to investors is
called underwriting. In the case of a new stock issue, this
sale is an initial public offering (IPO). Dealers earn a
commission that is built into the price of the security
offering, though it can be found in the prospectus. Primary
markets create long term instruments through which
corporate entities borrow from capital market.

5. INTRODUCTION
• Securities market is an economic institute within which
takes place the sale and purchase transactions of securities
between subjects of the economy, on the basis of demand
and supply. Also we can say that securities market is a
system of interconnection between all participants
(professional and nonprofessional) that provides effective
conditions: to buy and sell securities, and also
• To attract new capital by means of issuance new security
(securitization of debt),
• To transfer real asset into financial asset,
• To invest money for short or long term periods with the aim
of deriving profitability.

7. IPO
• IPO. The first sale of stock by a company to the
public. The most common reason for a
company to initiate an IPO is in order to raise
more capital.

8. FPO
• An issuing of shares to investors by a public
company that is already listed on an exchange.
• An FPO is essentially a stock issue of
supplementary shares made by a company
that is already publicly listed and has gone
through the IPO process.

9. PRIVATE PLACEMENT
• A company makes the offer of sale to
individuals and institution privately without
the issue of a prospectus.

10. OFFER FOR SALE
• A company sells the securities through the
intermediaries such as issue houses, and stock
brokers.

11. RIGHT ISSUE
When an existing company issue shares to its
existing shareholders in proportion to the
number of share held by them, it is known as
Rights Issue.

12. BONUS ISSUE
Bonus shares are the shares allotted by capitalization
of the reserves or surplus of a company.

13. STOCK OPTION
• A company can encourage its employees to take up
shares and subscribe to it is called stock option or
Employee Stock Option Scheme (ESOPS).
• SEBI has issued guidelines in this respect.

14. FOREIGN CAPITAL ISSUANCE
(a) American Depository Receipts: An American
Depository Receipts (ADRs) is physical
certificate evidencing ownership of American
Depository Shares.
(b) Global Depository Receipts: Global
Depository Receipts (GDRs) is a global
finance vehicle that allows an issuer to raise
capital simultaneously in two or more
markets through a global offering.

15. CONCLUSION

16. THANK YOU..!!