SALES PROMOTION 1 MARKETING MGMT/BUSINESS STUDIES

SALES PROMOTION PART 1

v  SALES PROMOTION 1
BUSINESS STUDIES
MARKETING MGMT
MEANING AND DEFINITION

–           IT IS ONE OF THE ELEMENTS OF PROMOTIONAL MIX. SALES PROMOTION USES BOTH MEDIA AND NON MEDIA MARKETING COMMUNICATIONS FOR  STIMULATING THE DEMAND.

–           SALES PROMOTION IS A TYPE OF PULL MARKETING TECHNIQUE WHICH AIMED AT PERSUADING A POTENTIAL CUSTOMER TO BUY  THE PRODUCT.

–           SALES PROMOTION TARGETED AT THE CONSUMER ARE CALLED CONSUMER SALES PROMOTION AND SALES PROMOTION TARGETED AT THE RETAILERS AND WHOLESALE ARE CALLED TRADE SALES PROMOTION

MEANING,FEATURES AND PROCESS OF PERSONAL SELLING

LAW OF VARIABLE PROPORTION

• LAW OF VARIABLE PROPORTIONS

• SHORT RUN PRODUCTION FUNCTION
• RETURNS TO FACTOR
• MICRO ECONOMICS
• SHORT RUN PRODUCTION FUNCTION
• IN THE SHORT RUN IT IS POSSIBLE TO INCREASE THE QUANTITIES OF ONE INPUT WHILE KEEPING THE QUANTITIES OF OTHER INPUTS CONSTANT IN ORDER TO HAVE MORE UNITS OF OUTPUT. IT IS KNOWN AS LAW OF VARIABLE PROPORTION WHEN A PRODUCER BRINGS CHANGES IN HIS PRODUCTION BY CHANGING ONLY ONE FACTOR OF PRODUCTION AS RESULT THERE IS CHANGE IN THE PROPORTIONS OF COMBINATION OF FACTORS OF PRODUCTION THEN THIS PROPORTIONAL RELATIONSHIP BETWEEN OUTPUT AND INPUTS IS REFERRED TO LAW OF RETURN TO A FACTOR
• PRODUCTION FUNCTION
• 
  

BASIC MACRO CONCEPT

Ø  BASIC MACRO CONCEPTS

Ø  MACRO ECONOMICS

Ø  MEANING OF CONSUMER GOODS

·         CONSUMPTION GOODS

• CONSUMPTION GOODS CONSUMPTION GOODS ARE THE GOODS,THOSE SATISFY CONSUMER’S WANTS DIRECTLY
• LIKE BREAD,SURF ,SOAPS.TV,FRIDGE,FURNITURE ,CAR ETC
• TOTAL EXPENDITURE ON CONSUMPTION GOODS IS KNOWN AS FINAL CONSUMPTION EXPENDITURE.
• FINAL GOODS ALSO INCLUDES SERVICES.
• HOUSEHOLD SECTOR GETS VARIOUS SERVICES SUCH AS BANKING,MEDICAL AND EDUCATION ETC
• HOUSEHOLD CONSUMER SECTOR FORMS THE BIGGEST PART OF THIS EXPENDITURE.

MEANING,FEATURES,SIGNIFICANCE AND PROCESS OF PERSONAL SELLING

v  PERSONAL SELLING
MEANING,FEATURES,SIGNIFICANCE AND PROCESS

BUSINESS STUDY/MARKETING MGMT/SALES AND ADVERTISING AMGMT

v  MEANING AND DEFINITION

◦     PERSONAL SELLING OCCURS WHEN A SALE REPRESENTATIVE MEETS WITH POTENTIAL CLIENT FOR THE PURPOSE OF TRANSACTING A SALE.

◦     PERSONAL SELLING CAN BE DEFINED AS THE PROCESS OF PERSON TO PERSON COMMUNICATION BETWEEN A SALES PERSON AND A PROSPECTIVE CUSTOMER,IN WHICH THE FORMER LEARNS ABOUT THE CUSTOMER’S NEEDS AND SEEKS TO SATISFY THOSE NEEDS BY OFFERING THE CUSTOMERS THE OPPORTUNITY TO BUY SOME THING OF VALUE SUCH AS GOODS AND SERVICES.

◦     PERSONAL SELLING IS ALSO KNOWN AS FACE TO FACE SELLING IN WHICH ONE PERSON WHO IS THE SALESMAN TRIES TO CONVINCE THE CUSTOMER IN BUYING A PRODUCT. IT IS PROMOTIONAL METHOD BY WHICH THE SALES PERSON USES HIS OR HER SKILL AND ABILITIES IN AN ATTEMPT TO MAKE A SALE.

v      DEFINITION

POWER,OBJECTIVE AND FUNCTION OF SEBI

vSECURITIES EXCHANGE BOARD OF INDIA

–           INTRODUCTION

–           ESTABLISHED IN 1988 AND GIVEN STATUTORY POWER ON 30 TH JAN 1992 AND CONTROLLER OF CAPITAL ISSUES WAS THE REGULATORY AUTHORITY BEFORE SEBI COME INTO EXISTENCE. IT  IS SIMILAR TO THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION

–           WAS ESTABLISHED ON 12 TH APRIL,1992 AS PER THE PROVISIONS OF THE SECURITIES EXCHANGE OF INDIA.

–           THE PREAMBLE OF THE SEBI DESCRIBES THE BASIC FUNCTIONS

1.       TO PROTECT THE INTERESTS OF INVESTORS IN SECURITIES

2.       PROMOTE  AND REGULATE THE DEVELOPMENT  OF SECURITIES MARKET AND FOR MATTERS CONNECTED THERE WITH AND INCIDENTAL THERE TO.

MEANING,FEATURES,PROCESS AND SIGNIFICANCE OF VISION

POWER,OBJECTIVES AND FUNCTIONS OF SECURITY EXCHANGE BOARD OF INDIA SEBI

MEANING ,FEATURES AND PROCESS OF STRATEGIC MANAGEMENT

u   MEANING ,FEATURES AND PROCESS OF STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT

       MEANING

·         THE WORD ‘STRATEGY IS DERIVED FROM THE GREEK WORD ‘ STRATEGOS’ MEANING A GENERALSHIP

·         STRATEGY IS THE DIRECTION AND SCOPE OF THE ORGANIZATION OVER LONG RUN.

·         WILLIAM F. GLUECK ,” STRATEGY IS A UNIFIED ,COMPREHENSIVE AND INTEGRATED PLAN RELATING THE STRATEGIC  ADVANTAGES OF THE FIRM TO CHALLENGES OF THE ENVIRONMENT. IT IS DESIGNED TO ENSURE THE BASIC OBJECTIVES OF THE ENTERPRISE ARE ACHIEVED.

·         STRATEGY IS A TACTICAL COURSE OF ACTION WHICH IS DESIGNED TO ACHIEVE LONG TERM OBJECTIVES. IT IS AN ART AND SCIENCE OF PLANNING AND MARSHALING OF RESOURCES FOR THEIR MOST EFFICIENT AND EFFECTIVE USE IN A CHANGING ENVIRONMENT.

·         ALFRED D CHANDLER,” STRATEGY IS THE BASIC LONG TERM GOALS AND OBJECTIVES OF AN ENTERPRISE AND ADOPTION OF THE COURSES OF ACTION AND ALLOCATION OF RESOURCES NECESSARY FOR CARRYING OUT OF THESE GOALS.

MEANING, FEATURES ,PROCESS AND SIGNIFICANCE OF VISION

Ø  MEANING, FEATURES ,PROCESS  AND SIGNIFICANCE OF VISION

Ø  STRATEGIC MANAGEMENT/BUSINESS POLICY

Ø  MEANING AND DEFINITION OF VISION

•     VISION STATEMENT DESCRIBES THE DESIRED FUTURE POSITION OF COMPANY.IT COMMUNICATES ABOUT YOUR LONG GOALS. IT IS VIVID AND MENTAL IMAGE OF WHAT YOU WANT YOUR BUSINESS TO BE AT SOME POINT OF TIME,BASED ON YOUR GOALS AND ASPIRATIONS.

•     A VISION STATEMENT IS A COMPANY’S ROAD MAP INDICATING WHAT THE COMPANY WANTS TO BECOME IN FUTURE AND PROVIDES DIRECTION  FOR THE COMPANY’S GROWTH.

•     KOTTER DEFINES AS A DESCRIPTION OF SOMETHING (AN ORGANIZATION, CORPORATE CULTURE BUSINESS,A TECHNOLOGY ,AN ACTIVITY) IN THE FUTURE.

•     MENTAL PERCEPTION OF THE KIND OF ENVIRONMENT AN INDIVIDUAL OR AN ORGANIZATION ASPIRES TO CREATE WITH IN A BROAD TIME HORIZON AND UNDERLYING CONDITIONS FOR THE ACTUALIZATION OF THAT PERCEPTION.

MEANING FEATURES AND PROCESS OF STRATEGIC MANAGEMENT

DESIGNING AND DEVELOPING TRAINING PROGRAMMES TRAINING AND DEVELOPMENT

DESIGNING AND DEVELOPING TRAINING PROGRAMMES TRAINING AND DEVELOPMENT

SENSITIVITY GROUP TRAINING

SENSITIVITY TRAINING (T GROUP)

Ø  SENSITIVITY TRAINING
(T GROUP)
TRAINING AND DEVELOPMENT

•     ORGANIZAION BEHAVIOR

•     ORGANIZATION DEVELOPMENT   AND CHANGE

•     HUMAN REOURCE MGMT

Ø  T-GROUP TRAINING

•     IS ALSO KNOWN AS SENSITIVITY TRAINING AND LABORATORY TRAINING OR ENCOUNTER GROUP

•     IT IS TRAINING APPROACH BASED ON EXPERIENTIAL LEARNING AND INVOLVING SMALL UNSTRUCTURED GROUPS IN WHICH PARTICIPANTS LEARN FROM THEIR OWN INTERACTIONS AND EVOLVING GROUP DYNAMICS,ABOUT INTERPERSONAL RELATIONSHIP,GROUP DYNAMICS AND LEADERSHIP.

•     IS A FORM OF TRAINING WITH THE GOAL OF MAKING PEOPLE MORE AWARE OF THEIR OWN GOALS AS WELL AS THEIR PREJUDICE AND MORE SENSITIVE TO OTHERS AND TO THE DYNAMICS OF GROUP INTERACTION

TRAINING EVALUATION REPORT TRAINING AND DEVELOPMENT

QUESTIONNIRES

QUESTIONNAIRE AS DATA COLLECTION FOR TRAINING EVALUATION

Ø   QUESTIONNAIRE AS DATA COLLECTION FOR TRAINING EVALUATION
TRAINING AND DEVELOPMENT

Ø  QUALITATIVE METHODS

•     SHOWS SUBJECTIVE JUDGEMENT. THEY PROVIDE RICH AND IN DEPTH INFORMATION BUT DON'T LEND COMPARISON. IT IS RELATED TO THE QUALITY OF THE PROGRAMME AND OF THE EXPERIENCE.

•     MERITS:-

I.            GIVE SOLID OPINION ABOUT THE QUALITY OF THE PROGRAMS

II.            USEFUL FOR IMPROVEMENT IN THE TRAINING PROGRAMME

III.            FLEXIBLE.

Ø  QUANTITATIVE METHODS

•     ARE RESEARCH METHODS DEALING WITH NUMBERS AND ANY THING THAT IS MEASURABLE IN SYSTEMATIC WAY OF INVESTIGATING OF PHENOMENON A AND THEIR RELATIONSHIP. IT IS USED TO ANSWER QUESTIONS ON RELATIONSHIP WITHIN MEASURABLE VARIABLES WITH AN INTENTION TO EXPLAIN,PREDICT AND CONTROL A PHENOMENON. THE MAJOR QUESTION THAT QUANTITATIVE EVALUATION RAISES HOW MANY OR HOW MUCH.

•     THIS DATA CAN YIELD REPRESENTATIVE AND GENERALIZE INFORMATION. THEY ARE EASY TO ADMINISTER,SUMMARIZE AND COMPARE AS TO QUALITATIVE METHODS.

TRAINING EVALUATION REPORT

Ø  TRAINING EVALUATION REPORT

Ø  MEANING OF TRAINING  EVALUATION REPORT

Ø  TRAINING IS EFFECTIVE IF IT PRODUCES DESIRED RESULT. TRAINING EVALUATION IS A CONTINUAL AND SYSTEMATIC PROCESS OF THE WORTH OF TRAINING PROGRAM. THE PURPOSE OF EVALUATION REPORT IS TO ASSESS THE EFFECTIVENESS OF THE TRAINING PROGRAMS

Ø  THIS REPORT COMMUNICATE THE INFORMATION TO STAKEHOLDERS ABOUT THE PURPOSE OF TRAINING,HOW IT WAS RECEIVED AND WHAT ARE ITS POSSIBLE AND POTENTIAL IMPACT TOGETHER WITH ANY ADDITIONAL REMARKS OR SUGGESTIONS. AND IT IS ALSO A PROVIDE THE FEED BACK

TRAINING AND DEVELOPMENT TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT

v TRAINING AND DEVELOPMENT

v      MEANING AND DEFINITION OF TRAINING

◦     TRAINING IS THE ACT OF INCREASING THE KNOWLEDGE AND SKILL OF AN EMPLOYEE FOR DOING A PARTICULAR JOB.IT CONSTITUTE A BASIC CONCEPT IN HUMAN RESOURCE DEVELOPMENT. IT IS CONCERNED WITH DEVELOPING A PARTICULAR SKILL TO A DESIRED STANDARD BY GIVING TRAINING.

◦     EDWIN B ,FLIPPO,” TRAINING IS AN ACT OF INCREASING THE KNOWLEDGE AND SKILL OF AN EMPLOYEE FOR DOING A PARTICULAR JOB.

◦     DALE S BEACH,” TRAINING IS THE ORGANIZED PROCEDURE BY WHICH PEOPLE LEARN KNOWLEDGE OR SKILL FOR DEFINITE PURPOSE.

APPROACHES OF TRAINING EVALUATION

Ø   TYPES OF TRAINING EVALUATION AND VARIOUS APPROACHES TO TRAINING EVALUATION
TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT

Ø  TYPES OF TRAINING EVALUATION

1. FORMATIVE EVALUATION:-SOMETIME REFERRED TO AS INTERNAL IS A METHOD FOR JUDGING THE WORTH OF PROGRAM WHILE THE PROGRAM ACTIVITIES ARE FORMING(IN PROGRESS). IT TAKES PLACE  BEFORE OR DURING A PROJECT’S IMPLEMENTATION WITH THE AIM OF IMPROVING THE PROJECT’S DESIGN AND PERFORMANCE. IT COMPLEMENTS SUMMATIVE EVALUATION AND ESSENTIAL FOR TRYING TO UNDERSTAND WHY A PROGRAM WORKS OR DOES NOT AND WHAT OTHER FACTORS ARE AT WORK DURING A PROJECT’S LIFE.
2. SUMMATIVE ASSESSMENT REFERS TO THE ASSESSMENT OF PARTICIPANTS WHERE THE FOCUS IS ON THE OUTCOME OF THE PROGRAMME. THE BASIC PURPOSE FOR SUMMATIVE EVALUATION IS TO PROVIDE A SUMMARY REPORT OF THE TRAINING RESULTS. FINDING FROM THE FORMATIVE PROCESS DIRECTLY AFFECT THE DECISION MADE IN THE SUMMATIVE ASSESSMENT PROCESS

TYPES AND APPROACHES OF TRAINING EVALUATION TRAINING AND EVALUATION

IDENTIFICATION OF TRAINING NEEDS/TRAINING NEEDS ASSESSMENT

´IDENTIFICATION OF TRAINING NEEDS/TRAINING NEEDS ASSESSMENT
TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT

v     MEANING

·         A TRAINING NEEDS ASSESSMENT IDENTIFIES INDIVIDUAL’S CURRENT LEVEL OF COMPETENCY,SKILL OR KNOWLEDGE IN ONE OR MORE OF THE AREAS AND COMPARE THAT COMPETENCY LEVEL TO THE REQUIRED COMPETENCY STANDARD ESTABLISHED FOR THEIR POSITIONS OR OTHER POSITIONS WITH IN THE ORGANIZATION. THE DIFFERENCE BETWEEN THE CURRENT AND REQUIRED COMPETENCY CAN HELP DETERMINE TRAINING NEEDS.

·         TRAINING NEEDS ASSESSMENT IS THE SYSTEMATIC METHOD OF DETERMINING IF A TRAINING NEED EXIST AND IF DOES,WHAT TRAINING IS REQUIRED TO FILL THE GAP BETWEEN THE STANDARD AND THE ACTUAL PERFORMANCE OF THE EMPLOYEE.

·         KAUFMAN ET ALL,NEED ASSESSMENT CAN BE DEFINED AS A PROCESS FOR IDENTIFYING AND PRIORITIZING GAPS BETWEEN CURRENT AND DESIRED RESULTS.

CAPITAL MARKET AND ITS COMPONENTS

■            OVERVIEW OF THE STRUCTURE AND SIGNIFICANCE OF FINANCIAL MARKETS 2 COVERING CAPITAL MARKET AND ITS COMPONENT

FINANCIAL SERVICES AND MARKETS

v    QUESTION

■             ALSO COVERS ANSWER TO THIS QUESTION:-WHAT DO YOU MEAN BY CAPITAL MARKET AND EXPLAIN THE  COMPONENTS OF CAPITAL MARKET?

■            MEANING OF CAPITAL MARKET

■            THE CAPITAL MARKET IS A MARKET FOR FINANCIAL ASSETS WHICH HAVE A LONG OR INDEFINITE MATURITY. IT DEALS WITH LONG TERM SECURITIES WHICH HAVE A MATURITY PERIOD OF ABOVE ONE YEAR.IT PROVIDES LONG TERM FUNDS FOR CORPORATE,CENTRAL AND STATE GOVERNMENT.

■            CAPITAL MARKET MAY BE FURTHER SUBDIVIDED INTO :-

a)    INDUSTRIAL SECURITIES MARKET

b)    GOVERNMENT SECURITIES MARKET

c)    LONG TERM LOAN MARKET

v    FEATURES OF CAPITAL MARKET

a)    DEALING IN MEDIUM AND LONG TERM SECURITIES

b)    DEALING IN MARKETABLE AND NON MARKETABLE: MARKETABLE SECURITIES ARE THOSE SECURITIES ARE THOSE WHICH CAN BE TRANSFERRED LIKE SHARE,DEBENTURES ETC

c)    CAPITAL MARKET COMPRISE  INDIVIDUAL INVESTORS LIKE GENERAL PUBLIC AS WELL AS INSTITUTIONAL INVESTORS INCLUDE MUTUAL FUNDS,LIC ETC

d)    INCLUDES BOTH PRIMARY AND SECONDARY MARKET

e)    OPERATIONS IN THE CAPITAL MARKET IS CONDUCTED WITH THE HELP OF INTERMEDIARIES LIKE MERCHANT BANKERS,SUB BROKERS,COLLECTION BANKERS ETC

v    ROLE OF CAPITAL MARKET

a)    HELPS IN RAISING LONG TERM FUNDS

b)    CHANNELIZING SAVING OF PEOPLE TO PRODUCTIVE USES

c)    HELPS IN CAPITAL FORMATION

d)    ENCOURAGES TO SAVE

e)    PROVIDES INCOME TO INVESTORS

f)     ENCOURAGES TO INVEST

g)    PROVIDES LIQUIDITY TO INVESTMENT

h)    ATTRACT FOREIGN INVESTOR

v    CAPITAL MARKET INSTRUMENTS

■            CAPITAL MARKET INSTRUMENT CLASSIFIED AS THREE TYPES

1. PURE INSTRUMENT:-

• EQUITY
• PREFEFERNEC
• DEBENTURES

2. HYBRID INSTRUMENT: CONVERTIBLE PREFERENCE SHARES,CONVERTIBLE DEBENTURES
3. DERIVATIVE INSTRUMENT: LIKE FUTURE,OBLIGATION AND FORWARD

v    COMPONENT OF CAPITAL MARKET

1.    INDUSTRIAL SECURITIES MARKET

2.    GOVERNMENT SECURITIES MARKET

3.    LONG TERM LOAN MARKET

v  INDUSTRIAL SECURITY MARKET

■            IT IS MARKET FOR INDUSTRIAL SECURITIES FOR EQUITY SHARES,PREFERENCE SHARES,DEBENTURES ETC. IT IS MARKET WHERE INDUSTRIAL CONCERNS RAISE THEIR CAPITAL OR DEBTS BY ISSUING APPROPRIATE INSTRUMENTS.

•                       PRIMARY MARKET OR NEW ISSUE MARKET: INITIAL PUBLIC OFFERING( FIRST TIME) AND EXISTING TRADING COMPANIES RAISE ADDITIONAL CAPITAL THROUGH SEASONED EQUITY OFFERING.

•                       SECONDARY MARKET OR STOCK EXCHANGE

v    NEW ISSUE MARKET

■            DEALS WITH THE NEW SECURITIES WHICH WERE NOT PREVIOUSLY AVAILABLE TO THE INVESTING THE INVESTING PUBLIC I.E SECURITIES THAT ARE OFFERED TO INVESTING PUBLIC FOR THE FIRST TIME.

■            THE NEW ISSUE MARKET COVERS ALL INSTITUTIONS DEALING IN FRESH CLAIMS IN THE FORM OF EQUITY SHARES,PREFERENCE SHARES,DEBENTURES ETC. ALL FINANCIAL INSTITUTIONS WHICH CONTRIBUTE,UNDERWRITER AND DIRECTLY SUBSCRIBE TO THE SECURITIES ARE PART OF NEW ISSUE MARKET.

v    METHODS OF FLOTATION OF SECURITIES IN PRIMARY MARKET

1.    PUBLIC ISSUE THROUGH PROSPECTUS

2.    OFFER FOR SALE

3.    PRIVATE PLACEMENT

4.    RIGHT ISSUE

5.    E-IPOS( ELECTRONIC INITIAL PUBLIC OFFER)

v  METHODS OF FLOTATION OF SECURITIES IN PRIMARY MARKET

1.    PUBLIC ISSUE THROUGH PROSPECTUS:- COMPANY ISSUES A PROSPECTUS TO INFORM AND ATTRACT GENERAL PUBLIC. PROSPECTUS PROVIDE DETAILS ABOUT THE PURPOSE FOR WHICH FUNDS ARE RAISED,PAST PERFORMANCE OF THE COMPANY,RISK FACTORS AND FUTURE PROSPECT OF THE COMPANY.

2.    OFFER FOR SALE:NEW SECURITIES ARE OFFERED TO PUBLIC BY INTERMEDIARIES WHO BUY THE WHOLE LOTS OF SECURITIES FROM THE COMPANY. THIS METHOD CONSIST OF TWO STAGES:-FIRST STAGE DIRECT SALE BY ISSUING COMPANY TO THE ISSUE HOUSE AND BROKERS AT THE NEGOTIATED PRICE AND THE SECOND STAGE RESELL THE ABOVE SECURITIES AT HIGHER PRICE TO THE PUBLIC.

3.    PRIVATE PLACEMENT:-THE SECURITIES ARE SOLD BY THE COMPANY TO INTERMEDIARY AT A FIXED PRICE AND IN THE SECOND STEP INTERMEDIARY SELL TO SELECTED CLIENTS. THE ISSUING COMPANY ISSUE PROSPECTUS SO THAT REPUTED CLIENTS PURCHASE FROM THE INTERMEDIARY

4.    RIGHT ISSUE:- SECTION 81 OF THE COMPANIES ACT DEALS WITH THE RIGHT ISSUE. WHEN A COMPANY INCREASES ITS SUBSCRIBED CAPITAL BY THE ISSUE OF NEW SHARES EITHER AFTER TWO YEARS OF ITS FORMATION OR AFTER ONE YEAR OF ITS FIRST ISSUE WHICH EVER IS EARLIER,THESE HAVE TO FIRST OFFERED TO THE EXISTING SHAREHOLDERS WITH THE RIGHT TO RESERVE THEM IN FAVOR OF A NOMINEE. A CIRCULAR IS SENT TO ALL EXISTING SHAREHOLDERS. TIME LIMIT OF ONE MONTH OR TWO MONTHS ARE GIVEN TO THE EXISTING SHAREHOLDERS TO EXERCISE THE RIGHT.

5.    E-IPOS( ELECTRONIC INITIAL PUBLIC OFFER): NEW METHOD OF ISSUING SECURITIES THROUGH ON LINE OF STOCK EXCHANGE, REGISTERED BROKERS ARE APPOINTED FOR THE PURPOSE OF ACCEPTING APPLICATIONS AND PLACING ORDERS. IT HAS TO APPLY FOR LISTING OF ITS SECURITIES ON ANY EXCHANGE OTHER THAN THE EXCHANGE IT HAS OFFERED.

v    STOCK EXCHANGE

■            THE SECONDARY MARKET IS THE MARKET FOR THE SALE AND PURCHASE OF PREVIOUSLY ISSUED OR SECOND HAND SECURITIES,

■            FEATURES OF A SECONDARY MARKET:-

a)    TRADING OF SECURITIES IN THE SECONDARY MARKET DOES NOT PROVIDE ANY FUNDS TO THE COMPANY

b)    THE INVESTORS AS WELL THE SPECULATORS TRADE IN THE SECURITIES

c)    SECURITIES OF LISTED PUBLIC LIMITED COMPANIES ARE TRADED ON RECOGNIZED STOCK EXCHANGE

d)    PROVIDE LIQUIDITY TO THE INVESTOR

e)    THE MARKET PROVIDES LIQUIDITY TO THE INVESTORS

v    MARKET SEGMENTS

1.    CAPITAL MARKET SEGMENT:- EQUITY,PREFERENCE,SHARES AND WARRANT ARE TRADED

2.    WHOLE SALE DEBT MARKET: WHERE STATE,AND CENTRAL GOVERNMENT SECURITIES,T-BILLS,PSU BONDS,CORPORATE DEBENTURES,COMMERCIAL PAPERS,CERTIFICATES OF DEPOSITS,MUTUAL FUNDS ARE TRADED.

3.    FUTURE AND OPTIONS: DERIVATIVES ON EQUITY,INDICES ARE TRADED

v    PARTICIPANTS AND MARKET INTERMEDIARIES

1. INVESTORS

• RETAIL INVESTORS
• INSTITUTIONAL INVESTORS
• FOREIGN INSTITUTIONAL INVESTORS

2. MARKET INTERMEDIARIES
3. REGULATORY BODIES

■            MARKET INTERMEDIARIES:-

a)    STOCK EXCHANGE MEMBERS/BROKERS AND DEPOSITORIES

b)    DEPOSITORY PARTICIPANT

v  GOVERNMENT SECURITIES MARKET

■            ALSO CALLED GILT EDGED SECURITIES MARKET. IT IS MARKET WHERE GOVT SECURITIES ARE TRADED.

■            IT IS OF TWO TYPES:

a)    SHORT TERM  : MONEY MARKET

b)    LONG TERM: IN THE CAPITAL MARKET

THE SECONDARY MARKET FOR GOVT SECURITIES IS NARROW BECAUSE THEY ARE RETAINED TILL THESE MATURITY

GOVERNMENT SECURITIES ARE SOLD THROUGH THE PUBLIC DEBT OFFICE OF THE RBI WHILE TREASURY BILLS ARE THROUGH AUCTIONS

v    LONG TERM LOAN MARKET

1. LONG TERMS LOANS ARE PROVIDED BY DEVELOPMENT AND COMMERCIAL BANKS LON TERM LOANS MAY BE CLASSIFIED :-

• TERM LOAN MARKET: DEVELOPMENT BANKS BOTH AT THE STATE AND REGIONAL LEVEL PROVIDE LONG TERM AND MEDIUM TERM LOANS DIRECTLY OR INDIRECTLY.

2. MORTGAGE MARKET:-SUPPLY MORTGAGE LOANS MAINLY TO INDIVIDUAL CUSTOMERS. IT IS AGAINST THE SECURITIES OF IMMOVABLE PROPERTY  LIKE REAL ESTATE
3. FINANCIAL GUARANTEE:-WHERE FINANCE IS PROVIDED AGAINST THE GUARANTEE OF A REPUTED PERSON IN THE FINANCIAL CIRCLE. GUARANTEE IS A CONTRACT TO DISCHARGE OF A REPUTED PERSON IN THE CASE OF DEFAULT.

a)    PERFORMANCE GUARANTEE:-

b)    FINANCIAL GUARANTEE: COVERS ONLY FINANCIAL GUARANTEE