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kunal sachdeva

kunal sachdeva (Querist)

02 April 2010 tell me all about share market, ipo,fpo mutual fund, primary market ,secondary market as soon as possible

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

02 April 2010 Capital market:--
Markets where the capital funds-debt and equity are traded. Included are private placement sources of debt and equity as well as organized markets and exchanges.

IPO:-
Initial Public Offer. It is the first offering of equity shares made by a company to the general public. Prior to the IPO the company's shares are held by a select group of people and are not available to the public.

Secondary Market:-
A market of buyers and sellers who trade in securities that have already been issued in the primary market. Distinguished from the primary market in which the issuer sells shares directly to the investor.

Primary market:-
A market for new issues of shares, debentures a nd bonds, where investors apply directly to the issuer for allotment on a pre-specified basis (price, minimum application amount etc).

MUTUAL FUND:-

A mutual fund is made up of money that is pooled together by a large number of investors who give their money to a fund manager to invest in a large portfolio of stocks and / or bonds. Mutual fund is a kind of trust that manages the pool of money collected from various investors and it is managed by a team of professional fund managers (usually called an Asset Management Company) for a small fee. The investments by the Mutual Funds are made in equities, bonds, debentures, call money etc., depending on the terms of each scheme floated by the Fund. The current value of such investments is now a days is calculated almost on daily basis and the same is reflected in the Net Asset Value (NAV) declared by the funds from time to time. This NAV keeps on changing with the changes in the equity and bond market. Therefore, the investments in Mutual Funds is not risk free, but a good managed Fund can give you regular and higher returns than when you can get from fixed deposits of a bank etc.