F-449-12-NCFM-Beginners-module - New

2y ago
1.2K Views
379 Downloads
1.20 MB
96 Pages
Last View : 1m ago
Last Download : 2m ago
Upload by : Jerry Bolanos
Transcription

NCFMNSE's CERTIFICATION IN FINANCIAL MARKETSFinancial Markets: A Beginners' ModuleNATIONAL STOCK EXCHANGE OF INDIA LIMITED

Test 02250225015002000 10014060 5050100100100100755055555550NA222NASr.No.Name of 2012015001500150015001500150010003334Financial Markets: A Beginners' Module *Mutual Funds : A Beginners' ModuleCurrency Derivatives: A Beginner's ModuleEquity Derivatives: A Beginner's ModuleInterest Rate Derivatives: A Beginner's ModuleCommercial Banking in India: A Beginner's ModuleSecurities Market (Basic) ModuleCapital Market (Dealers) Module *Derivatives Market (Dealers) Module *FIMMDA-NSE Debt Market (Basic) ModuleInvestment Analysis and PortfolioManagement ModuleFundamental Analysis ModuleSecurities Market (Advanced) ModuleMutual Fund (Advanced) ModuleBanking Sector ModuleInsurance ModuleMacroeconomics for Financial Markets ModuleNISM-Series-I: Currency Derivatives CertificationExaminationNISM-Series-II-A: Registrars to an Issue andShare Transfer Agents - CorporateCertification ExaminationNISM-Series-II-B: Registrars to an Issue andShare Transfer Agents - Mutual FundCertification ExaminationNISM-Series-IV: Interest RateDerivatives Certification ExaminationNISM-Series-V-A: Mutual FundDistributors Certification Examination *NISM-Series-VI: Depository OperationsCertification ExaminationNISM Series VII: Securities Operations andRisk Management Certification ExaminationCertified Personal Financial Advisor(CPFA) ExaminationNSDL-Depository Operations ModuleCommodities Market ModuleSurveillance in Stock Exchanges ModuleCorporate Governance ModuleCompliance Officers (Brokers) ModuleCompliance Officers (Corporates) ModuleInformation Security Auditors Module (Part-1)Information Security Auditors Module (Part-2)Options Trading Strategies ModuleFPSB India Exam 1 to 4**3536373839Examination 5/Advanced Financial Planning **Equity Research Module ##Issue Management Module ##Market Risk Module ##Financial Modeling Module ###121314151617181920212223242526272829303132Test DurationNo. of(in minutes) QuestionsCandidates have the option to take the tests in English, Gujarati or Hindi languages.Candidates securing 80% or more marks in NSDL-Depository Operations Module ONLY will be certified as 'Trainers'.Following are the modules of Financial Planning Standards Board India (Certified Financial Planner Certification)FPSB India Exam 1 to 4 i.e. (i) Risk Analysis & Insurance Planning (ii) Retirement Planning & Employee Benefits(iii) Investment Planning and (iv) Tax Planning & Estate PlanningExamination 5/Advanced Financial Planning ##Modules of Finitiatives Learning India Pvt. Ltd. (FLIP) ### Module ofIMS PreschoolThe curriculum for each of the modules (except Modules of Financial Planning Standards Board India, Finitiatives Learning India Pvt. Ltd. andIMS Proschool) is available on our website: www.nseindia.com Education Certifications.*#**

PrefaceThe National Stock Exchange of India Ltd. (NSE), set up in the year 1993, istoday the largest stock exchange in India and a preferred exchange for trading inequity, debt and derivatives instruments by investors. NSE has set up a sophisticatedelectronic trading, clearing and settlement platform and its infrastructure serves as arole model for the securities industry. The standards set by NSE in terms of marketpractices; products and technology have become industry benchmarks and are beingreplicated by many other market participants. It provides a screen-based automatedtrading system with a high degree of transparency and equal access to investorsirrespective of geographical location. The high level of information disseminationthrough the on-line system has helped in integrating retail investors across thenation. The exchange has a network in more than 350 cities and its trading membersare connected to the centralservers of the exchangeinMumbai throughasophisticated telecommunication network comprising of over 2500 VSATs. NSE hasaround 850 trading members and provides trading in over2500 debt securities.Besides this,NSE provides trading1000 equity shares andin various derivativeproducts such as index futures, index options, stock futures, stock options andinterest rate futures.At NSE, it has always been our endeavour to continuously upgrade the skills andproficiency of the Indian investor. Since, financially literate investors are thebackbone of the securities market, knowledge and awareness about the securitiesmarket is of the foremost concern to us, starting with the most basic of informationbeing made available as the first step.This booklet has therefore been prepared for those of you who are keen to acquiresome basic but key information about the stock markets as an initial step towardsbecoming a more informed investor. We hope this booklet will act as a means ofsatisfying some of your initial queries on the stock markets.

CONTENTSINVESTMENT BASICS.1.6What is Investment? . 6Why should one invest?. 6When to start Investing? . 6What care should one take while investing? . 7What is meant by Interest?. 7What factors determine interest rates? . 7What are various options available for investment?. 8What are various Short-term financial options available for investment?. 8What are various Long-term financial options available for investment? . 9What is meant by a Stock Exchange? . 10What is an „Equity'/Share? . 10What is a „Debt Instrument'? . 11What is a Derivative? . 11What is a Mutual Fund? . 11What is an Index? . 12What is a Depository? . 12What is Dematerialization? . 122.SECURITIES 13What is meant by „Securities‟? . 13What is the function of Securities Market? . 13Which are the securities one can invest in? . 132.1REGULATOR . 14Why does Securities Market need Regulators? . 14Who regulates the Securities Market? . 14What is SEBI and what is its role? . 142.2 PARTICIPANTS . 15Who are the participants in the Securities Market? . 15Is it necessary to transact through an intermediary? . 15What are the segments of Securities Market? . 153. PRIMARY MARKET 16What is the role of the „Primary Market‟?. 16What is meant by Face Value of a share/debenture? . 16What do you mean by the term Premium and Discount in a Security Market?.163.1ISSUE OF SHARES . 17Why do companies need to issue shares to the public? . 17What are the different kinds of issues? . 17What is meant by Issue price? . 18What is meant by Market Capitalisation? . 18What is the difference between public issue and private placement? . 19What is an Initial Public Offer (IPO)? . 191

Who decides the price of an issue? . 19What does „price discovery through Book Building Process‟ mean? . 19What is the main difference between offer of shares through book building andoffer of shares through normal public issue?. 20What is Cut-Off Price? . 20What is the floor price in case of book building? . 20What is a Price Band in a book built IPO? . 20Who decides the Price Band? . 21What is minimum number of days for which a bid should remain open duringbook building? . 21Can open outcry system be used for book building? . 21Can the individual investor use the book building facility to make anapplication?. 21How does one know if shares are allotted in an IPO/offer for sale? What is thetimeframe for getting refund if shares not allotted? . 21How long does it take to get the shares listed after issue? . 21What is the role of a „Registrar‟ to an issue? . 22Does NSE provide any facility for IPO? . 22What is a Prospectus? . 22What does „Draft Offer document‟ mean? . 23What is an „Abridged Prospectus‟? . 23Who prepares the „Prospectus Offer Documents‟?. 23What does one mean by „Lock-in‟? . 24What is meant by „Listing of Securities‟? . 24What is a „Listing Agreement‟? . 24What does „Delisting of securities‟ mean? . 24What is SEBI's Role in an Issue? . 24Does it mean that SEBI recommends an issue? . 25Does SEBI tag make one‟s money safe? . 253.2FOREIGN CAPITAL ISSUANCE . 25Can companies in India raise foreign currency resources? . 25What is an American Depository Receipt? . 25What is an ADS?. 26What is meant by Global Depository Receipts? . 264.SECONDARY MARKET 274.1INTRODUCTION . 27What is meant by Secondary market? . 27What is the role of the Secondary Market? . 27What is the difference between the Primary Market and the Secondary Market?. 274.1.1 Stock Exchange . 28What is the role of a Stock Exchange in buying and selling shares? . 28What is Demutualisation of stock exchanges? . 28How is a demutualised exchange different from a mutual exchange? . 284.1.2 Stock Trading . 29What is Screen Based Trading? . 29What is NEAT? . 29How to place orders with the broker? . 292

How does an investor get access to internet based trading facility? . 29What is a Contract Note? . 30What details are required to be mentioned on the contract note issued by thestock broker? . 30What is the maximum brokerage that a broker can charge? . 30Why should one trade on a recognized stock exchange only for buying/sellingshares? . 31How to know if the broker or sub broker is registered? . 31What precautions must one take before investing in the stock markets? . 31What Do‟s and Don‟ts should an investor bear in mind when investing in thestock markets? . 324.2PRODUCTS IN THE SECONDARY MARKETS. 34What are the products dealt in the Secondary Markets? . 344.2.1Equity Investment. . 36Why should one invest in equities in particular? . 36What has been the average return on Equities in India?. 36Which are the factors that influence the price of a stock? . 37What is meant by the terms Growth Stock/ Value Stock? . 37How can one acquire equity shares? . 38What is Bid and Ask price? . 38What is a Portfolio? . 39What is Diversification?. 39What are the advantages of having a diversified portfolio? . 394.2.2. Debt Investment . 40What is a „Debt Instrument‟? . 40What are the features of debt instruments? . 40What is meant by „Interest‟ payable by a debenture or a bond? . 41What are the Segments in the Debt Market in India? . 41Who are the Participants in the Debt Market? . 41Are bonds rated for their credit quality? . 41How can one acquire securities in the debt market? . 415.DERIVATIVES 42WhatWhatWhatWhatWhatWhat6.are Types of Derivatives?. 42is an „Option Premium‟? . 42is „Commodity Exchange‟? . 43is meant by „Commodity‟? . 43is Commodity derivatives market? . 43is the difference between Commodity and Financial derivatives? . 43DEPOSITORY 44How is a depository similar to a bank? . 44Which are the depositories in India? . 44What are the benefits of participation in a depository? . 44Who is a Depository Participant (DP)?. 45Does one need to keep any minimum balance of securities in his account withhis DP? . 45What is an ISIN?. 45What is a Custodian? . 453

How can one convert physical holding into electronic holding i.e. how can onedematerialise securities? . 46Can odd lot shares be dematerialised? . 46Do dematerialised shares have distinctive numbers? . 46Can electronic holdings be converted into Physical certificates?. 46Can one dematerialise his debt instruments, mutual fund units, governmentsecurities in his demat account? . 467.MUTUAL FUNDS 47What is the Regulatory Body for Mutual Funds? . 47What are the benefits of investing in Mutual Funds? . 47What is NAV? . 48Are there any risks involved in investing in Mutual Funds? . 48What are the different types of Mutual funds? . 49What are the different investment plans that Mutual Funds offer? . 52What are the rights that are available to a Mutual Fund holder in India? . 52What is a Fund Offer document? . 53What is Active Fund Management? . 53What is Passive Fund Management? . 54What is an ETF?. 558.MISCELLANEOUS . 568.1CORPORATE ACTIONS. 56What are Corporate Actions? . 56What is meant by „Di

NCFM NSE's CERTIFICATION IN FINANCIAL MARKETS Financial Markets: A Beginners' Module NATIONAL STOCK EXCHANGE OF INDIA LIMITED. Test Details Sr. No. . 12 Fundamental Analysis Module 1500 120 60 100 60 5 13 Securities Market (Advanced) Module 1500 120 60 100 60 5 14 Mutual Fund (Advanced) Module 1500 120 60 100 60 5 .

Related Documents:

Certification: CFA level 1 Candidate(June 2018), Fundamental Analysis module (NCFM 2018), Mutual Fund Distributors Certification (NISM 2018), NSE-Summer Attachment Program(2017), Equity Derivative Module(NCFM 2017), Technical Analysis Module(NCFM 2017) Positions of Responsibilities: Treasurer AFCON, DFS SYED FAISAL HASAN NEERAJ ACHARYA AKSHAY .

NCFM Technical Analysis Module Mock Test Details NCFM Technical Analysis Module Mock Test has been prepared with a view to provide a comprehensive and in depth knowledge about technical analysis. “Success is the result of perfection, hard work, learning from failure, loyalty, and persistence.” NCFM Technical Analysis Module Mock Test

9. NCFM Surveillance 10. Licentiate (Insurance) 11. RBI Operations 12. Macro-Economic Policies 13. BCFM Modules 14. NSDL Depository 15. Taxation 16. Debt Markets 17. Fundamental Analysis 18. Technical Analysis 19. NCFM Commodities Kindly Contact us for any training requirements on NCFM, NISM & BCFM certifications. NISM SERIES V MUTUAL FUND .

NCFM is a non-profit organization dedicated to ending harmful discrimination against men, boys and the women who love them. Since 1977, and at all times, NCFM has stood for equal treatment under the law between men and women.

Financial Markets Management: XI Study Material . 2 Preface NSE and CBSE Certification in Financial Markets (NCFM) NCFM is an online certification programme aimed at upgrading skills and buildin

NCFM, NCK56, NCK45, N2, RL8KR, RL8KS and RL8K are essentially identical strains, as indicated by identical chromosomal DNA fragment patterns. N2 was selected by Marschall Products from NCFM as a smooth, bile resistant colony. RL8KS was selected similarly in Dr. Todd

NCFM is a Gram-positive, homofermentative, rod shaped lactic acid bacterium (LAB) residing in the gastrointestinal tract [11] and used in dairy products and dietary supplements [12]. NCFM has excellent abilit

API refers to the standard specifications of the American Petroleum Institute. ASME refers to the standard specifications for pressure tank design of the American Society of Mechanical Engineers. WATER TANKS are normally measured in gallons. OIL TANKS are normally measured in barrels of 42 gallons each. STEEL RING CURB is a steel ring used to hold the foundation sand or gravel in place. The .