In this essay we will discuss about the various markets and their sources of finance. 1. Essay on Domestic Market: Companies raise funds through equity and debt in the domestic market, through financial instruments. These include commercial paper (CP), certificates of deposit (CD), equity shares (with or without voting rights or differential voting rights), medium-term or long-term bonds (straight, convertible, [...]
Financial instruments mean documents that evidence the claims and income or asset as "any contract that gives rise to both a financial asset on one enterprise and a financial liability or equity instrument of another enterprise". 1. Securities: 'Securities' is a general term for a stock exchange investment. Securities Contract (Regulation) Act, 1956 defines securities as to include: 1. Shares, [...]
List of popular money market instruments used in India: 1. Commercial Papers (CPs) 2. Certificate of Deposits (CDs) 3. Inter-Bank Participation Certificates (IBPCs) 4. Treasury Bills (T-Bills) 5. Commercial Bills 6. Call/Notice Money 7. Repurchase Agreements (REPOs). Instrument # 1. Commercial Papers (CPs): Commercial Paper is an unsecured promissory note issued with a fixed maturity, by a company, and approved [...]