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    Financial Mark

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    uday vaidya
    The document is about the financial securities market. It defines the securities market as a platform where stocks, bonds and derivatives are bought and sold, allowing companies and governments to raise capital. It also discusses the role of the securities market in facilitating capital formation, providing liquidity and price discovery, and its regulation by bodies like SEBI to ensure transparency and investor protection.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Financial Mark

    Uploaded by

    uday vaidya
    15 views6 pages
    The document is about the financial securities market. It defines the securities market as a platform where stocks, bonds and derivatives are bought and sold, allowing companies and governments to raise capital. It also discusses the role of the securities market in facilitating capital formation, providing liquidity and price discovery, and its regulation by bodies like SEBI to ensure transparency and investor protection.

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    FINANCIAL MARK

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    The document is about the financial securities market. It defines the securities market as a platform where stocks, bonds and derivatives are bought and sold, allowing companies and governments to raise capital. It also discusses the role of the securities market in facilitating capital formation, providing liquidity and price discovery, and its regulation by bodies like SEBI to ensure transparency and investor protection.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    15 views6 pages

    Financial Mark

    Uploaded by

    uday vaidya
    The document is about the financial securities market. It defines the securities market as a platform where stocks, bonds and derivatives are bought and sold, allowing companies and governments to raise capital. It also discusses the role of the securities market in facilitating capital formation, providing liquidity and price discovery, and its regulation by bodies like SEBI to ensure transparency and investor protection.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    CJS PUBLIC SCHOOL

    Class-X
    Financial Marketing
    Code-405
    Session (2023-2024)

    Submitted To: Submitted By:


    Mr. Prakul Arora Name: Drishti
    Class: X B
    RollNo: 09
    INTRODUCTION

    • The Securities Market is a platform where various financial instruments, such as stocks, bonds, and derivatives, are bought
    and sold.
    • It provides a mechanism for companies and governments to raise capital by issuing securities to investors.
    • Securities represent ownership or debt in a company or government entity.
    • The Securities Market plays a crucial role in the economy by facilitating capital formation and investment opportunities.
    • It provides liquidity to investors, allowing them to buy and sell securities easily.
    • The Securities Market also enables price discovery, as the prices of securities are determined through supply and demand
    dynamics.
    • Transparency and investor protection are key aspects of the Securities Market, ensuring fair and efficient trading.
    • Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States, oversee and regulate the
    Securities Market to maintain integrity and protect investors and SEBI in India controls securities market .
    MEANING OF SECURITIES MARKET

    • The Securities Market is a marketplace where various financial instruments, such as stocks, bonds, and derivatives, are
    bought and sold.
    • It provides a platform for companies and governments to raise capital by issuing securities to investors.
    • Securities represent ownership or debt in a company or government entity.
    • The Securities Market facilitates the transfer of ownership of securities from sellers to buyers.
    • It plays a crucial role in the economy by promoting capital formation and investment opportunities.
    • The Securities Market provides liquidity to investors, allowing them to buy and sell securities easily.
    • It enables price discovery, as the prices of securities are determined through supply and demand dynamics.
    • The Securities Market is regulated by regulatory bodies to ensure fair and transparent trading practices.
    • It provides a platform for investors to diversify their portfolios and manage risk.
    • The Securities Market contributes to the overall stability and growth of the financial system.
    ROLE OF SECURITIES MARKET

    • Facilitates capital formation: The Securities Market provides a platform for companies and governments to raise capital by
    issuing securities to investors. This capital is essential for businesses to expand, invest in new projects, and drive economic
    growth.
    • Provides liquidity: The Securities Market allows investors to buy and sell securities easily, providing liquidity to the market.
    This liquidity ensures that investors can convert their investments into cash whenever they need it, enhancing market
    efficiency.
    • Enables price discovery: Through the interaction of buyers and sellers, the Securities Market determines the prices of
    securities based on supply and demand dynamics. This price discovery mechanism helps investors make informed decisions
    and ensures fair valuation of securities.
    • Promotes transparency: The Securities Market operates on the principles of transparency, requiring companies to disclose
    relevant information to investors. This transparency fosters investor confidence, reduces information asymmetry, and
    promotes fair and efficient trading.
    • Enhances investor protection: Regulatory bodies oversee the Securities Market to protect investors' interests. They enforce
    rules and regulations to prevent fraud, market manipulation, and insider trading, ensuring a level playing field for all
    participants.
    • Supports economic growth: The Securities Market plays a vital role in the overall economic growth of a country. It provides a
    channel for savings to be channeled into productive investments, stimulates entrepreneurship, and encourages innovation.
    REGULATORS OF SECURITIES MARKET

    • Securities and Exchange Commission (SEC): The SEC is the primary regulatory body overseeing the securities
    market in the United States. It enforces securities laws, regulates exchanges, and protects investors.
    • Financial Conduct Authority (FCA): The FCA is the regulatory authority for the securities market in the United
    Kingdom. It ensures the integrity of the market, promotes competition, and protects consumers.
    • Securities and Exchange Board of India (SEBI): SEBI is the regulatory body for the securities market in India. It
    regulates and supervises the market, protects investor interests, and promotes the development of the
    securities market.
    • Australian Securities and Investments Commission (ASIC): ASIC is the regulatory authority for the securities
    market in Australia. It enforces laws related to investments, superannuation, and corporate governance,
    ensuring fair and transparent markets.
    • Financial Services Agency (FSA): The FSA is the regulatory body for the securities market in Japan. It supervises
    financial institutions, ensures market stability, and protects investors.Securities and Exchange Board of India
    (SEBI): SEBI is the regulatory body for the securities market in India. It regulates and supervises the market,
    protects investor interests, and promotes the development of the securities market. SEBI ensures fair and
    transparent trading practices, regulates market intermediaries, and enforces securities laws.
    • European Securities and Markets Authority (ESMA): ESMA is an independent EU authority that works to enhance
    investor protection and promote stable and orderly financial markets across the European Union.
    CONCLUSION

    • The Securities Market is a crucial component of the economy, facilitating capital formation and driving economic
    growth.
    • It provides a platform for companies and governments to raise capital by issuing securities to investors.
    • The Securities Market enables investors to buy and sell securities, providing liquidity and promoting price
    discovery.
    • Transparency and investor protection are key principles of the Securities Market, ensuring fair and efficient
    trading practices.
    • Regulatory bodies, such as the SEC, FCA, and SEBI, oversee and regulate the market to maintain integrity and
    protect investor interests.
    • The Securities Market supports investment opportunities, diversification, and wealth creation.
    • It contributes to the overall stability and development of the financial system.
    • Understanding the functioning and regulations of the Securities Market is essential for making informed
    investment decisions and participating in its growth.

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