Be the topper - all notes

PRIMARY MARKET  Provides the channel for sale of new securities. provides the opportunities to issuers to raise resources to meet the requirements. For shares original cost of stock shown on the certificate. For Bond it is the an amount paid to the holder at maturity. When a security is sold above its face value it is said to be issued at a premium and  if it is sold at less than its face value then it is said to be issued at a discount. Why do companies need to issue shares to the public? borrowings from banks may not be sufficient for setting the business over the long term  so companies invite the public to contribute and issue shares to individual investors. When the shares of a company are offered to 50 or more investors it  is known as public issue. When the shares of a company are offered to 49 or less than 49 investors it is known as private placement. What are the different kinds of issues? Public Issue Right Issue Preferential Issue/ private placement. Initial public offering

                                  MONEY - WHAT IT IS? Expert says “money is what money does”. A man on the street would probably cite coins and notes as a definition of money. But is money just coins & notes? What about balance in the bank? Haven’t we heard people saying I have money in the bank? Definition of Money Money is invention of human mind. It is a symbol that represents the value of goods & services. Money is a medium of exchange. It allows us to satisfy our needs & wants. For more explanation of the chapter you can click here Evolution of money Initially, money was not a physical entity. There was no monetary system existed. To get a particular commodity, people had to exchange it with another commodity.  Which was called as Barter System. Due to many limitations, Barter system could not serve the purpose. Discovery of precious metals gave a solution to the problems in Barter system. The metals were exchanged instead of commodities. Later, difficulty to carry he