Security Analysis and Portfolio Management by Bedaduri Rama Murthy
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Transcript of Security Analysis and Portfolio Management by Bedaduri Rama Murthy
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B. R. Murthy
Securities
and
Portfolio management
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BEDADURI RAMA MURTHY B. Com, B.ED, MBA, ( M. Com ), AP-SET,
Associate Professor Dept. MBA , GIVC
And
Teaching Associate ,Academy Of Basic Concepts Zone (ABCZ)Room No 26, Metro Complex, Near Girls College, Madanapalli.
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Investment
1. The Investment Environment
2. Classifications of Financial Market
3. Classification of Financial Instruments
4. Securities Market
How Securities are Traded
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Investment Avenues
Financial Derivatives(Futures, Options)
Equity Shares(Blue Chip , Growth, Income
Cyclical Shares)
Non-Marketable Instruments(Bank Deposits, Post Office Deposits, Public Provident Finds, National Saving Scheme,
Indira Vikas Patra, Kisan Vikas Patra)
Money Market Instruments(Treasury bills, Commercial Bills,
Certificates Of Deposits)
Bonds(Guilt Edge Securities, RBI Relief Bonds,
Private Sector Debentures, Preference Shares)
Life Insurance Schemes(Traditional & ULIP Plans)
Mutual Fund Schemes(Growth, Income, Balanced Schemes)
Real Estates(Real Estate, Commercial Property, Agriculture Land, Time Share in a
Holiday Resort)
Precious objects(Gold and Silver, Precious Stones &
Art Objectives')
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Nature Of Clime
Seasoning Of Clime
Timing Of Delivery
Maturity of Clime
Debt Market Equity Market
Primary Market Secondary Market
Spot Market Future Market
Money Market Capital Market
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STOSCK MARKET IN INDIA
As of January 2005 there were 23 stock exchanges
recognized by the central government.
The most important development in the Indian stock
market was the establishment of the National Stock
Exchange (NSE) in 1994.
Within a short period it emerged as the largest stock
exchange surging ahead of the Bombay Stock
Exchange (BSE)
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Security Market
• Structure of the Securities Market
• Participants in the Securities Market
• Primary Equity Market
• Public Issue
• Secondary Equity Market (Stock Market)
• Trading and Settlement
• Buying and Selling Shares
• Stock Market Indices
• SEBI’s Regulation
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STRUCTURE OF THE SECURITIES MARKET
Securities
Market
Equity
Market
Debt
Market
Derivatives
Market
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PARTICIPANTS IN THE SECURITIES MARKET
Stock Exchanges Listed Securities Depositories Brokers FIIs Merchant Bankers or Investment Bankers Mutual Funds Registrars Underwriters Bankers to an issue Debenture trustees Venture capital funds. Credit rating agencies
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BOOK BUILDING
Book building is a method of offering shares
to investors in which the issue price is not fixed in
advance (as is done in a fixed price offer) but is
determined through a bidding process.
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How Securities are Traded
Open System
Screen-based System
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Nature of Securities Trading
Cash Transaction Forward TradingRolling TradingMargin TradingScrip less TradingInternet tradingDemat Trading
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Clearing
Trade ComparisonsSettlementsScreen Based Trading System
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Return ri Probability Pi
Weighted AvgReturn piri
8 0.15 1.20
9 0.20 1.80
10 0.30 2.70
11 0.20 2.20
12 0.15 1.80
1.0 E(r) 10
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RiPi Ri-E(r)
(ri – E (r))2 Pi (ri – E (r)2
8 0.15-2
4 0.6
9 0.20 -1 1 0.2
10 0.30 0 0 0
11 0.20 1 1 0.2
12 0.15 2 4 0.6
Ri=1 1.6
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