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About Stock Market Bonus Issue

Bonus shares are the shares allotted by capitalization of the reserves or surplus of a company.

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About Stock Market Bonus Issue

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  1. Introduction about Primary Market PRIMARY MARKET

  2. INDEX • INTRODUCTION • IPO • FPO • PRIVATE PLACEMENT • OFFER FOR SALE • RIGHTS ISSUE • BONUS ISSUE • STOCK OPTION • FOREIGN CAPITAL ISSUANCE • CONCLUSION • BIBLIOGRAPHY

  3. ASSET LIABILITY STUFF

  4. INTRODUCTION • The primary market is the part of the capital market that deals with issuing of new securities. Companies, governments or public sector institutions can obtain funds through the sale of a new stock or bond issues through primary market. This is typically done through an investment bank or finance syndicate of securities dealers. • The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. Primary markets create long term instruments through which corporate entities borrow from capital market. 

  5. INTRODUCTION • Securities market is an economic institute within which takes place the sale and purchase transactions of securities between subjects of the economy, on the basis of demand and supply. Also we can say that securities market is a system of interconnection between all participants (professional and nonprofessional) that provides effective conditions: to buy and sell securities, and also • To attract new capital by means of issuance new security (securitization of debt), • To transfer real asset into financial asset, • To invest money for short or long term periods with the aim of deriving profitability.

  6. IPO • IPO. The firstsale of stock by a company to the public. The most common reason for a company to initiate an IPO is in order to raise more capital.

  7. FPO • An issuing of shares to investors by a public company that is already listed on an exchange. • An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process.

  8. PRIVATE PLACEMENT • A company makes the offer of sale to individuals and institution privately without the issue of a prospectus.

  9. OFFER FOR SALE • A company sells the securities through the intermediaries such as issue houses, and stock brokers.

  10. RIGHT ISSUE When an existing company issue shares to its existing shareholders in proportion to the number of share held by them, it is known as Rights Issue.

  11. BONUS ISSUE Bonus shares are the shares allotted by capitalization of the reserves or surplus of a company.

  12. STOCK OPTION • A company can encourage its employees to take up shares and subscribe to it is called stock option or Employee Stock Option Scheme (ESOPS). • SEBI has issued guidelines in this respect.

  13. FOREIGN CAPITAL ISSUANCE • American Depository Receipts: An American Depository Receipts (ADRs) is physical certificate evidencing ownership of American Depository Shares. • Global Depository Receipts: Global Depository Receipts (GDRs) is a global finance vehicle that allows an issuer to raise capital simultaneously in two or more markets through a global offering.

  14. CONCLUSION

  15. Thank you For more information Visit our website …. PRIMARY MARKET www.dhanashriacademy.com

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