CBSE Class 11 Financial Markets Primary market

Read and download CBSE Class 11 Financial Markets Primary market in NCERT book for Class 11 Other Subjects. You can download latest NCERT eBooks chapter wise in PDF format free from Studiestoday.com. This Other Subjects textbook for Class 11 is designed by NCERT and is very useful for students. Please also refer to the NCERT solutions for Class 11 Other Subjects to understand the answers of the exercise questions given at the end of this chapter

NCERT Book for Class 11 Other Subjects Primary Market

Class 11 Other Subjects students should refer to the following NCERT Book Primary Market in Class 11. This NCERT Book for Class 11 Other Subjects will be very useful for exams and help you to score good marks

Primary Market NCERT Book Class 11

Primary Market

2.1 Primary Markets

Companies raise funds to finance their projects through various methods. The promoters can bring their own money of borrow from the financial institutions or mobilize capital by issuing securities. The funds maybe raised through issue of fresh shares at par or premium, preferences shares, debentures or global depository receipts. The main objectives of a capital issue are given below:

To promote a new company

To expand an existing company

To diversify the production

To meet the regular working capital requirements

To capitalize the reserves

Stocks available for the first time are offered through primary market. The issuer may be a new company or an existing company. These issues may be of new type or the security used in the past. In the primary market the issuer can be considered as a manufacturer. The issuing houses, investment bankers and brokers act as the channel of distribution for the new issues. They take the responsibility of selling the stocks to the public.

2.1.1 The Function

The main service functions of the primary market are origination, under writing and distribution. Origination deals with the origin of the new issue. The proposal is analyzed in terms of the nature of the security, the size of the issue, timing of the issue and floatation  method of the issue. Underwriting contract makes the share predictable and removes the element of uncertainty in the subscription (underwriting is given in the latter part of this chapter). Distribution refers to the sale of securities to the investors. This is carried out with the help of the lead managers and brokers to the issue.

2.1.2 The Rise and Fall of Primary Markets

Only a few years back, any investor worth his salt thought that investing in primary issues was the easiest and simplest way to make money. He scoffed at other "inferior" options like mutual funds and bank deposits because they did not double or triple his money in a few months time! Believe it or not, primary markets did that precisely - they posted near indecent returns like 300 to 400% just in two months time. When the common investor benchmarked all other investment options against these phenomenal returns, obviously they stood no chance. Returns apart, investing in primary issues appeared so simple and "risk free"! All that was required of investors to partake in the manna was to simply put as large an application as possible because the proportionate allotment rule worked to the favor of big investors (small investors were supposed to have gone to mutual funds) and pray for a large allotment. Once they received some shares on the large subscription, they just offloaded their holdings at the listed prices, which were at a hefty premium to the issue price not because of any good fundamentals of the issuing company but simply because demand was far greater than the supply and waited for the next IPO to make another killing.

As profit booking became so simple, money flowed from all directions, some legal and some not so legal - the markets boomed and promoters, brokers and investors all made merry. "Entrepreneurs" of all sorts mushroomed to float companies with fancy projects and launched IPOs with tall promises to give high earnings and dividends. But no one bothered to check the prospectuses or the credentials of these promoters because there was enough money to be made by every one or so they thought, until the markets crashed like the proverbial nine pins 

What drove the primary markets to these dizzy heights only to collapse later? Those were the early days of liberalization and the foreign institutional investors and mutual funds had no clue as to the levels of transparency or corporate governance absent in the Indian companies. They believed in the picture specially painted for them by the wily promoters, liked it and invested heavily believing in what was right in the West would be right in the East as well. They were rudely shaken when the promised projects failed to take off because of rampant diversion of money, plain incompetence and severe change in the economic climate.

Then came, the ice winter of stock market gloom, which lasted for probably the longest period in the near history. As investors lost money and faith in the primary market, they punished all the issuers - IPO after IPO failed to get the desired response from the markets - it almost became impossible for any company to raise money from the stock markets. Genuine companies, which lined up on-going projects for funds to be raised from the market were driven to desperation and borrowed at usurious rates that broke the back of their balance sheets. The high cost of borrowing made debt servicing difficult and defaults occurred even from corporate organizations known for their high credit worthiness.

The South Asian crisis further made life very difficult for Indian entrepreneurs as their exports failed to take off and money got locked up in huge inventories. This was the perfect recipe for disaster and doomsayers were busy writing the epitaph on the Indian economic revival. As the economy teetered on the verge of collapse, the outlook has changed slowly but surely - software sector came to the rescue of the markets, a few robust companies lifted the market from their lowest depths to the present peaks of unprecedented highs.


Please refer to the link below - CBSE Class 11 Financial Markets-Primary market

CBSE Class 11 Categories of Reference Sources Description and Scope
CBSE Class 11 Computer Hardware used in Library Concepts
CBSE Class 11 Disaster Management Introduction
CBSE Class 11 Disaster Management Natural Hazards
CBSE Class 11 Engineering Graphics Circles Semi Circles
CBSE Class 11 Engineering Graphics Development of Surfaces
CBSE Class 11 Engineering Graphics Isometric Projection
CBSE Class 11 Engineering Graphics Lines Angles
CBSE Class 11 Engineering Graphics Orthographic Projection
CBSE Class 11 Engineering Graphics Orthographic Projections
CBSE Class 11 Engineering Graphics Sections Of Solids
CBSE Class 11 Engineering Graphics Special Curves
CBSE Class 11 Fashion Studies books
CBSE Class 11 Fashion Studies Elements of Design
CBSE Class 11 Fashion Studies Elements of Garment Making
CBSE Class 11 Financial Markets Commodities Market
CBSE Class 11 Financial Markets Financial Statement Analysis
CBSE Class 11 Financial Markets and Instruments
CBSE Class 11 Financial Markets Primary market
CBSE Class 11 Financial Markets Secondary Market
CBSE Class 11 Five Laws of Library Science
CBSE Class 11 Library Automation Software Main Features
CBSE Class 11 Library Information and Society
CBSE Class 11 Philosophy Buddhist Formal Logic
CBSE Class 11 Philosophy Categorical Syllogism
CBSE Class 11 Philosophy Elements of Symbolic Logic
CBSE Class 11 Philosophy Methods of Natural and Social Sciences
CBSE Class 11 Philosophy Mills Methods
CBSE Class 11 Philosophy Nyaya Theory
CBSE Class 11 Philosophy Observation and Experiment
CBSE Class 11 Philosophy Other Forms of Immediate
CBSE Class 11 Philosophy Science and Hypothesis
CBSE Class 11 Philosophy Square of Opposition
CBSE Class 11 Philosophy Terms
CBSE Class 11 Philosophy Terms and Propositions
CBSE Class 11 Philosophy The Nature and Subject matter
CBSE Class 11 Punjabi Textbook
CBSE Class 11 Reference and Information Sources
CBSE Class 11 Sanskrit Book Ritika
CBSE Class 11 Setting up and Running a School Library
CBSE Class 11 Theory of Cataloguing
CBSE Class 11 Theory of Classification
CBSE Class 11 Types of Libraries and their Role
NCERT Class 11 Graphic Design Development of Script
NCERT Class 11 Graphic Design Elements And Principles of Graphic Design
NCERT Class 11 Graphic Design Evolution in Reprography
NCERT Class 11 Graphic Design Glossary
NCERT Class 11 Graphic Design Indigenous Graphic Design And Culture
NCERT Class 11 Graphic Design Indigenous Graphic Design Practices
NCERT Class 11 Graphic Design Intoduction to Graphic Design
NCERT Class 11 Graphic Design Movable Metal Type to Digital Imaging
NCERT Class 11 Graphic DesignGraphic Art Design And Graphic Design
NCERT Class 11 Heritage Crafts Clay
NCERT Class 11 Heritage Crafts Crafts Heritage
NCERT Class 11 Heritage Crafts Jewellery
NCERT Class 11 Heritage Crafts Metal
NCERT Class 11 Heritage Crafts Natural Fibers
NCERT Class 11 Heritage Crafts Painting
NCERT Class 11 Heritage Crafts Paper Crafts
NCERT Class 11 Heritage Crafts Stone
NCERT Class 11 Heritage Crafts Textiles
NCERT Class 11 Heritage Crafts Theatre Crafts

Other Subjects NCERT Book Class 11 Primary Market

The above NCERT Books for Class 11 Other Subjects Primary Market have been published by NCERT for latest academic session. The textbook by NCERT for Primary Market Other Subjects Class 11 is being used by various schools and almost all education boards in India. Teachers have always recommended students to refer to Primary Market NCERT etextbooks as the exams for Class 11 Other Subjects are always asked as per the syllabus defined in these ebooks. These Class 11 Primary Market book for Other Subjects also includes collection of question. We have also provided NCERT solutions for Class 11 Other Subjects which have been developed by teachers of StudiesToday.com after thorough review of the latest book and based on pattern of questions in upcoming exams for Class 11 students.

NCERT Book Class 11 Other Subjects Primary Market

The latest NCERT book for Primary Market pdf have been published by NCERT based on the latest research done for each topic which has to be taught to students in all classes. The books for Class 11 Other Subjects Primary Market are designed to enhance the overall understanding of students. All Class 11 NCERT textbooks have been written in an easy to understand language which will help to enhance the overall level of Class 11 students. 

Primary Market NCERT Book Class 11 Other Subjects

As the students of Class 11 need the books for their regular studies, we have provided all NCERT book for Primary Market in pdf here for free download. All pdf NCERT books available here for Class 11 will help them to read on their mobile or computers. They can take a print of the Class 11 Other Subjects NCERT Book Primary Market pdf easily and use them for studies. The NCERT textbooks for Class 11 Other Subjects have been provided chapter-wise and can be downloaded for free of cost. 

Class 11 Other Subjects Primary Market NCERT Book

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Class 11 Primary Market NCERT Book Other Subjects

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