Page 44 - DCOM507_STOCK_MARKET_OPERATIONS

Rupesh Roshan Singh, Lovely Professional University
Unit 3: Primary Market and Secondary Market

Unit 3: Primary Market and Secondary Market Notes

CONTENTS
Objectives

Introduction
3.1 Structure of Primary Market in India
3.2 Investment Procedure
3.2.1 Public Issue Through Prospectus
3.2.2 Offer for Sale
3.2.3 Private Placement
3.2.4 Rights Issue
3.2.5 Over-the-Counter Placement
3.2.6 Initial Public Offer through Stock Exchange Online System (E-IPO)

3.2.7 Book-Building
3.2.8 Green Shoe Option
3.3 Primary Market Intermediaries in India
3.3.1 Merchant Bankers
3.3.2 Underwriters
3.3.3 Bankers to an Issue
3.3.4 Brokers to an Issue

3.3.5 Registrar to an Issue and Transfer Agent
3.3.6 Debenture Trustees
3.4 Secondary Market
3.4.1 Importance of Secondary Market
3.5 Stock Market
3.5.1 Functions of a Stock Exchange
3.5.2 Advantages of Stock Exchange
3.5.3 Speculations in Stock Exchange
3.6 Investment Procedure in Stock Market

3.7 Role of NSCCL
3.8 Summary
3.9 Keywords
3.10 Review Questions
3.11 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain structure of primary market in India
 Discuss investment procedure

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