Intermediate Term and Lease Financing

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Chapter 20

Sr.Chapter Chapter HeadingNo.No.

1. 3 Understanding the Global context of business (110212)2. 4 Conducting Business Ethically and Responsibly (250212)3. 6 Organizing the Business Enterprise (030312)4. 7 Understanding Entrepreneurship and Small Business

(100312)5. 8 Managing Human Resources (240312)6. 9 Understanding Employee Motivating, Satisfying &

Leadership (3103, 0704)

7. 11 Understanding Marketing Processes and Consumer Behavior (140412)

8. 16 Managing Quality and Productivity (280412)9. 17 Managing Information Systems and Communication

Technology (0505)

10. 19 Understanding Money and Banking (1205)11. 20 Intermediate Term and Lease Financing (1905)

Include case study

Course Outline

TOC

1. SECURITIES MARKETS

2.STOCKS

3.BONDS

4.OTHER INVESTMENTS

5.BUYING AND SELLING SECURITIES

6.SECURITIES MARKET REGULATION

STOCK EXCHANGE

5

Excellence refrigerator- 45 lacs (290 share -29.4 lacs) 58 lacs ---

SIA Gen – 60 lacs (290 shares - 29.40 lacs)---

Zufi Pharma – 100 lacs (490 shares - 49 lacs) 24.5 ---

SECURITIES MARKETS

Securities: Stocks and bonds representing secured, or

asset based, claims by investors against issuers

Primary and Secondary Securities Markets Primary Securities Market

Market in which new stocks and bonds are bought and sold

Secondary Securities Market Market in which stocks and bonds are traded

What is Stock? Ownership

Certificate

Par Value

Dividends

STOCKS

Common Stocks Par Value or face value of a share of

stock, set by issuing company’s board of directors

Market Value: current price of a share of stock in the stock market

Book Value: Value of a common stock expressed as total shareholders’ equity divided by the number of shares of stock

Blue – chip stock: Common stock issued by a well – established company with a sound financial history and a stable pattern of dividend payouts

STOCKS

Primary Stocks This is usually issued with a stated par

value, and dividends are typically expressed as a percentage of par value.

If a preferred stock with a $100 par value pays a 6% dividend, then holders will receive an annual dividend of $6 per share

STOCKS

Stock exchange Organization of individuals formed to

provide an institutional setting in which stock can be traded

Broker: Individual or organization who receives

and executes buy-and-sell orders on behalf of other people in return for commissions

BONDS

Security through which an issuer promises to pay the buyer a certain amount of money by a specified future date

13

OTHER INVESTMENTS

Mutual Funds Company that pools investments from

individuals and organizations to purchase a portfolio of stocks, bonds, and short-term securities

Commodities Individuals and businesses can buy

and sell commodities as investments. Examples: gold, coffee beans,

platinum etc

14

MARKET INDEXES Market indexes:

Summary of price trends in a specific industry and/ or the stock market as a whole

Bull Market: The period of rising stock prices

Bear Market: The period of falling stock prices

Placing Orders Limit Order: Purchase stock only if its equal to or less

than a specific price Stop Order: Sale of a stock if its price falls to or below a

specific level Round lot: Purchase or sale of stock in unit of 100

shares Odd lot: Purchase or sale of stock in fractions of round

lot

15

Names of companies Profit per stock? Is it paid in

pakistan What is the status of kalia in bonds

Why they issue list of bonds How is the interest paid