A PROJECT ON CAPITAL MARKET GUIDE CERTIFICATE It is hereby certified that the project report on “CAPITAL MARKET”, being submitted by Shelly jumba student of the degree of Master of Business Administration (3rd Sem) of CT Institute of Management and Information Technology, Jalandhar which affiliated to Punjab Technical University, Jalandhar is an original work carried out successfully under my guidance and supervision and that no part of this project has been submitted for any other degree/
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3. Primary market is where securities are bought and sold. 4. Secondary Markets are previously sold stocks and bonds are available for resale. 5. Risk in finances is taken by shareholders who invest money in a company that has debt. 6. Security is an instrument that has a value placed on it. 7. Stock is a security that shows ownership in corporation. 8. Bond is a promissory note that is given by a borrower stating they will pay the interest for a long period of time. 9
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12/6/2012 Chapter 24 Options and Corporate Finance Key Concepts and Skills • Understand the options terminology • Be able to determine option payoffs and pricing bounds • Understand the five major determinants of option value • Understand employee stock options • Understand the various managerial options • Understand the differences between warrants and traditional call options • Understand convertible securities and how to determine their value 1 12/6/2012 Chapter Outline •
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explicit and implicit incentives facing outside managers. For Yale, it focus more on the financial area that is less competitive and full of potentially rewarding, such as the private equity and venture capital. It pay less attention on the stock and bonds. 6. Real Asset Real asset is the long-term asset. First of all, the real asset has low correlation with common stock. Real asset is very different from the marketable securities. As a result, the real asset is low correlated with the marketable
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ceEDHEC Business School Principles of Finance M1 - Business & Management Track Exam Monday 13 December 2010, 13h00 - 16h00. • The exam is closed book. Use only pocket calculators accepted by the school. • You should only write your answers in the space allocated to you after each question. • The blank sheets of paper in the back of each page will not be considered. You may therefore use them for your “rough answers”. • Show the approach you use to obtain the solution: Partial credit is given
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IN 370 Week 1 Individual Assignment | Define the following terms and identify their role in finance: | | a. | Finance:An area in the field of economics that involves the distribution of an organization’s resources including investment, acquirement of monies and the management of said monies. Finance can also be defined as the way an organization raises money through the sale of stock or equity in the organization.The role of finance is to help organizations obtain profits through the sales
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46 problems (Chapters 4, 5, 10, 11) Chapter 4 PROBLEMS (p. 129) 1. An ATM service fee of $2 is used by a person 100 times in a year. What would be the future value in 10 years (use a 4 percent rate) of the annual amount paid in ATM fees? $2,401.12 = $200 x 12.006 2. What might be a savings goal for a person who buys a five-year CD paying 4.67 percent instead of an 18-month savings certificate paying 3.29 percent? A person saving for a longer-term goal such as children’s education
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Calculation of cost of debt by using IRR method : Formula : B0=I*t=1n11+rd t +M*11+2dn=I*PVIFA r d,n+M*PVIFrd,n B0=Value of the bond at time zero I= annual interest paid in dollars n=number of years to maturity m=par value in dollars rd=required return on bond B0=$956 Coupon Rate =13.5% I= coupon payment=13.5%*1000 = 135 Year to maturity =n=25 years Par value =1000 A trial –and – error technique: At the first consider rd=7.58%equal to method one and B0=$956 I= coupon payment=$135
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marketable| Ans:|D| 4.|Series EE bonds must be held at least ______ years in order to receive the guaranteed minimum rate.| A)|3| B)|5| C)|8| D)|10| Ans:|B| 5.|Treasury bills are traded in the _____________________.| A)|money market.| B)|capital market.| C)|government market.| D)|regulated market.| Ans:|A| 6.|Which of the U.S. Treasury securities is always sold at a discount?| A)|Treasury bills| B)|Treasury notes| C)|Treasury bonds| D)|All of the Treasury securities are
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Financial Systems How does the financial inter-mediation process can enhance the efficiency of financial system? (Give a comprehensive description considering the different components of the financial system & the relationship, each of these components having with financial inter-mediation) Financial system is a system with differences at several levels in firm’s level; it is system to track the financial activities of the company. In national level financial system is a system that enables
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