Financial Management

2. FINANCIAL STRATEGY
 FIXED CAPITAL REQUIREMENT
 WORKING CAPITAL REQUIREMENT

3. FINANCIAL MARKET
 MONEY MARKET AND CAPITAL MARKET ( FINANCE MARKET)
 PRIMARY MARKET ( NEW COMPANY) AND SECONDARY MARKET (
STOCK MARKET)
 ORGANIZED ( GOVERNED BY RBI )AND UNORGANIZED MARKET
(NOT GOVERNED BY RBI)
 FOREIGN EXCHANGE MARKET (FOREIGN CURRENCIES)
 BROAD, DEEP AND SHALLOW MARKET( NATIONAL ,
INTERNATIONAL LEVEL)

4. INDIAN CAPITAL MARKET
 GROWTH OF NEW ISSUE MARKET AND STOCK EXCHANGE
 SEBI
 NSE
 DEVELOPMENT OF CREDIT RATING AGENCIES
 MERCHANT BANKING
 INVESTOR SERVICES OF INDIA LIMITED
 ENTRY OF UTI
 FOREIGN INSTITUTIONAL INVESTORS
 MUTUAL FUNDS

5. METHODS OF ISSUING SECURITIES IN NEW
ISSUE MARKET
 PROSPECTUS
 OFFER FOR SALE
 INITIAL PUBLIC OFFER
 RIGHTS ISSUE
 PRIVATE PLACEMENT
 BONUS ISSUE
 BOOK BUILDING
 STOCK OPTION METHOD
 BOUGHT OUT DEALS

6. INNOVATIVE SOURCES OF FINANCE
 VENTURE CAPITAL
 SEED CAPITAL
 EURO ISSUES
 LEASE FINANCING
 VENTURE CAPITAL

7. ASSET BASED SECURITIES
 FINANCIAL SECURITY COLLATERALIZED BY A POOL OF ASSETS
SUCH AS LOANS, LEASES, CREDIT CARD DEBT, ROYALTIES OR
RECEIVABLES

8. HYBRID SECURITIES
 COMBINATION OF TWO OR MORE FINANCIAL SECURITY /
INSTRUMENTS.

9. OPTION FINANCING
 LOAN FINANCING : SHORT TERM ( TRADE CREDIT, PUBLIC DEPOSIT,
CUSTOMER CREDIT, ACCRUAL ACCOUNTS, INDIGENOUS BANKERS,
GOVERNMENT ASSISTANCE, FINANCE COMPANIES) LONG TERM
 ON THE BASIS OF RISK – SHARES (OWNED CAPITAL) AND DEBENTURES,
LOANS ( BORROWED CAPITAL)
 ON THE BASIS OF FINANCE – RETAINED EARNINGS & DEPRECIATION(
INTERNAL SOURCE), SECURITIES ( EXTERNAL SOURCE)
 ON THE BASIS OF TIME – LONG TERM CAPITAL, MEDIUM TERM CAPITAL,
SHORT TERM CAPITAL
 ON THE BASIS OF PURPOSE – FIXED CAPITAL & WORKING CAPITAL

10. WARRANTS , CONVERTIBLE AND
EXCHANGEABLE
 RIGHT AND NOT AN OBLIGATION, TO BUY OR SELL A SECURITY AT
A CERTAIN PRICE BEFORE EXPIRATION.
 TYPES – WARRANT LINKED BOND, WEDDING WARRANTS,
COVERED WARRANTS

11. COMMERCIAL PAPER
UNSECURED, SHORT TERM LOANS USED BY CORPORATION FOR
FINANCING ACCOUNTS RECEIVABLES AND INVENTORIES.
IT IS ISSUED AT DISCOUNT.
NOT MORE THAN 9 MONTHS
VERY SAFE INVESTMENT
CAN BE INVESTED MORE THAN 1 LAKH