Samacheer Kalvi 12th Commerce Notes Chapter 13 Concept of Market and Marketer

Samacheer Kalvi 12th Commerce Notes Chapter 13 Concept of Market and Marketer

→ The word market is derived from the Latin word “Marcatus” which means trade, commerce, merchandise, a place where business is transacted. The common usage of market means a place where goods are bought or sold.

→ According to Pyle “Market includes both place and region in which buyers and sellers are in free competition with one another”.

→ On the basis of different approaches markets have been classified on the basis of Area, Nature of Goods and economic view, transaction, regulation, time, volume and importance.

→ One who deals in a market, specially one who promotes or sells a product or service. A marketer is someone whose job involves marketing.

→ Marketing is a comprehensive concept which starts from the point of creation, promotion and ultimately delivering the goods and services to consumers and business.

→ The marketer plays four roles as follows – Instigator, Innovator, Integrator and Implementor.

→ The functions of marketer are gathering and analyzing market information, market planning, product designing and development grading, transportation, storage and warehousing etc.

Co-operative Market:

Co-operative market presents the collaboration between two or more partners or companies to achieve common or distinct goals. The business which is related to most from the strategy due to sharing of marketing expenses and man power etc.

Farmers Market:

A farmers market is a physical retail market place intended to sell goods directly by farmers to consumers. Farmers market may be indoors or outdoors and consists of booths, table or stands where farmers sells fruits, vegetable, meats etc.

Mention any two Types of Markets on the basis of Goods

  1. Wheat exchange market of Hapur
  2. Cotton exchange market of Bombay
  3. Goat market Aathur in Tamil Nadu.

Mention any two Markets on the basis of Time

  1. Markets for perishable goods like fruits, milk, vegetables etc.
  2. Market for durable goods like automobiles, household goods, electronics, home appliances and medical equipments.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 12 Employee Training Method

Samacheer Kalvi 12th Commerce Notes Chapter 12 Employee Training Method

→ Training is the act of increasing enhancing the new skill of problem solving activity and technical knowledge of an employee for doing the jobs themself. Training enables the employees to guide their behaviour.

→ Training refers to the teaching and learning activities carried on for the primary purpose of helping member of an organization to acquire and to apply the required knowledge, skill and attitudes to perform their jobs effectively and efficiently.

→ According to Edwin B. Flippo, “Training is the act of increasing the knowledge and skills of an employee for doing particular jobs”.

→ Various methods of training are used to train the employees. Its varying from one organization to another. Various factors like skill requirement, qualification of the candidates cost and time availability and in depth knowledge should be considered before adopting any given method. There are two methods of employee training which are used by the organization.

  • On the job training
  • Off the job training

→ Benefits to the organization:
It improves the skill of employee, it reduce wastages of materials and idle time, it reduce labour turnover of employee and it improves union and management relation.

→ Benefits to the employees are to add knowledge and skill competency career advancement, to increase employees productivity and the employees get higher earnings through incentives and rewards.

→ Benefits of customer to get better quality of product and service and to get innovative products or value added or feature rich products.

Hemalatha is the MD of Aravindh Textile manufacturing company. Her company produces textiles which has a good sales record in Indian market as well as foreign market. Hemalatha plans to buy new tech machineries for his company. But she first decides to give a training program to his employees about the new machineries.

(i) What kind of training program should she provide to his employees and
On the job training.

(ii) What are the benefits does the employees gain from that training program
Benefits of on the Job Training:

  1. To learn while working
  2. Simple method of learning
  3. An economical way of learning
  4. Quick learning
  5. Immediate productivity
  6. Most practical way to learn and faster to understand the methodology.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 11 Employee Selection Process

Samacheer Kalvi 12th Commerce Notes Chapter 11 Employee Selection Process

→ The selection process may be adopted depending upon the nature of jobs and organization. A selection process includes a number of steps screening the application forms, test, interview, checking of references, physical examination and approval by appropriate authority.

→ The main aim of selection process is to find out the suitable candidate for specific job. Selection is the process of choosing the most suitable person for the vacant position in the organization.

→ “Selection is a managerial decision making process is to predict which job applicants will be successful if hired” – David and Robbins

→ Several tests are conducted in the selection process to ensure whether the candidate possesses the necessary qualification to fit into various positions in the organization. (Ability tests and personality tests).

→ Interview represents a face to face interaction between the interview and interviewee. Various types of interview, preliminary, structure, unstructure indepth, panel, stress, telephone online, group and video conferencing interview.

→ Factors influencing selection process, are listed below. Nature of post, number of candidates, selection policy cost factor, and level of Educational Qualification and Experience.

→ Placement is an important human resource activity after a candidate has been selected. He/she should be placed on a particular job. The process placing the right man on the right job is called “Placement”.

→ The significance of the placement is to improves employees morale, to helps in reducing employee turnover it help the candidate to work as per the pre-determined objectives of the organization.

→ Principles are followed at the time of placement of an employee. Man should be placed on the job according to the requirements of the job. The job should be offered to the man based on his qualification.

→ When placing new recruit on the job an effort should be made to develop a sense of loyalty and co-operation in him, so that he/she may realize his\her responsibilities better towards the job and the organization.

Know the job selection methods in TamilNadu government

Eligibility criteria: Inviting application eligible candidate for selection process. It is based on educational qualification either X, XII std or degree course. Merit-mark based and refer Date of Birth will be preferred. Preference will be given ST, SC, OBC then OC Age limit, compulsory languages known and must computer knowledge. Written test and interview method to be conducted to select the appropriate candidate for the post.

Collection of job application related to different types job

Application form: Prescribed resume prepared about your personal information and job wise, experience wise, details about the job requirement, networking job board and career website, Referrals job fairs.

Student should know about the skilled and unskilled workers

Skilled labour often refers to a line of work that requires technical skill or specialized Training.
Electricians, plumbers:

  1. Highly skilled occupation – Lawyers, Doctors, Architects.
  2. Unskilled labour occupation typically don’t require works have any kind of special training or skills. Because of these positions are should displaced by technology and innovation like computer, Farm labours, cashiers cleaners and sweepers.

Students should know how to apply and fill up the job application

  1. Get all your basic information together personal details education experience etc.
  2. Read the application form right through before we write anything.
  3. Follow all instructions and answer the questions asked in the form.
  4. Spell check and proof read your application.
  5. Write out a detailed employment history.
  6. Record information regarding your education.
  7. List of references with each person home, then job title or Relation to us and their contact number.
  8. Include special skill and other related experience.
  9. Have someone review our application.

How will you prepare your Resume and Application?

  1. Contact details
  2. List of key skills
  3. List of technical and software skill
  4. Personal attributes
  5. Educational qualification
  6. Employment history and
  7. References.

Find out any Five Selection interview questions

  1. Can you tell me a little about yourself?
  2. How did you hear about the position?
  3. What do you know about the company?
  4. What are your greatest professional strength?
  5. Tell me about a challenge or conflict you have faced at work and in what way you handle with it?
  6. What is your dream job?

Student should arrange face to face interview

A data collection method when the interviewer directly communicates with respondent in accordance with the prepared questionnaire.

  • Take your time and use think speak, shut up.
  • Remember your body language obsess about it.

To Identify the Placement process

Placement will be Governed by institute placement guidelines.

  1. Planning for placement.
  2. The Board activities undertaken by the placement cell.
  3. Institute placement committee.
  4. Students registration for placement.
  5. Placement Brochure
  6. Placement eligibility.
  7. Guidelines for placement.

Student should visit a nearby organization and observe the selection interview

  1. Critical analysis of the personality of candidates.
  2. Accurate final selection.
  3. Providing details about the company to the candidate.
  4. Use of experience and knowledge of expert interviewers. Organising resume writing, Group discussion, interview, Skill session communication, Networking and Relation building with the potential recruiters.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 10 Recruitment Methods

Samacheer Kalvi 12th Commerce Notes Chapter 10 Recruitment Methods

→ Recruitment is a process of attracting potential people to apply for a job in an organization.

→ Recruitment encourages the prospective employees to apply for the job. Then the organization scrutinise the applications received and the suitable candidates are shortlisted for selection.

→ According to Edwin B. Flippo, “It is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization”.

→ Recruitment process includes the following steps, planning, determining vacancies, advertisement, Selection Process Evaluation and control.

→ There are basically two ways by which an organisation can recruit its employees namely Internal and External sources.

→ Internal Sources:
Transfer, upgrading promotion, Demotion, Recommendation, by existing Employees, job rotation, Retired employee, Acquisitions and Mergers.

→ External:
(i) Direct:
Advertisement, Walkins, Campus Recruitment, Recruitment at Factory gate, Rival firms e-Recruitment

(ii) Indirect:
Public Employment Exchanges, Employment Agencies, Employment Consultancies, Professional Associations, Deputation word of mouth, Labour contractors Job Portals, Outsourcing, Poaching.

The recent methods of recruiting by organisations include the following methods
(i) Outsourcing
(ii) Poaching

Students can be asked to identify four or five job portals with websites

  1. Career Builder.com
  2. glass door.com
  3. google for jobs
  4. Idealist.com
  5. Naukri.com

Writing an advertisement for the recruitment of Product Manager

We are currently recruiting a strong product manager for our (B2B) core product.

  1. Day to Day role and responsibility
  2. Responsible for internet listing service, online website product-package upto date and there is clear value preposition presented to our customers.
  3. You have experience working to redefine, modernize and maintain a product process to digital advertising product experience job function product and pay type salary.

Write an assignment on the ways by which recruitment can be Outsourced

  1. Having trouble finding great candidates.
  2. Its taking time and Resources away from the core business.
  3. They need to reduce their Turnover Rates.
  4. Current Recruiting functions are out of control.
  5. Need to cut costs
  6. Focus on core business
  7. A high turn over rate and competitive advantage.
  8. Rapid growth.

Suggest suitable methods of Training for middle and top level employees

  1. Coaching
  2. Understudy Assignment
  3. Job Rotation
  4. Special projects
  5. Actual learning planned career progression
  6. Instructor – Led classroom training.

Interactive methods:

  1. Computer – based e-leaming
  2. Training
  3. Video Training,
  4. Coaching and mentoring.

Projecting the future methods of recruitment that can save time and money

  1. Innovative Recruitment methods.
  2. Inclusive job advertisement.
  3. Programmative advertising.
  4. Video interviewing
  5. Employee referrals and social media.
  6. Texting, Virtual Reality,
  7. Using data and mobile recruitment.

Designing new ways of Recruitment through internet

  1. Make mobile a priority
  2. Irregular grid layouts.
  3. Bold fonts and Bright colors
  4. Increase in micro interactions
  5. Web – design Trends to watch in 2019.

Enhancing the role of HR department in promoting work life balance

Helping to facilitates culture that focuses in performance and quality of output rather than the number of hours the people spend at their desk. Introduce work place flexibility leading by examples one of the best way for HR to create company culture that promote output oriented and support the principles of healthy work life balance.

Simplifying the process of registering in Employment Exchanges

Fill up the required application form which is either available online or with employment exchange in your area. Submitted attested photo copies of all your educational certificates and experience related certificates along with your resume caste certificates, photo, produced ID – Voter ID, Ration card, passport, Birth certificate. After registration you will be issued a registration numbers.

Reducing the time gap between search for new jobs and availability of new jobs

Making a career changes is typically the best way to improve your salary and benefits.
How to jumb start a job search?
Its perfectly to say you felt burned out after graduating and need a breathe and then you looked for a job, you honed your skill, travelled, volunteering start working as a part time while you looked for that first job you get the idea.

To formulate policies to enhance the job opportunities in both Public and Private sector

  1. Develop and maintain infrastructure.
  2. Promote and expand existing business.
  3. Address inefficiency in the local economy.
  4. Promote human capital development to help vulnerable groups especially to participate in the labour market. Promote small micro, macro and medium enterprises (supply and demand side measures and attract investment in the city) Initiative planning and decision making processes are needed to support private sector participate in urban Government.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

Samacheer Kalvi 12th Commerce Notes Chapter 9 Fundamentals of Human Resource Management

→ The human resources is the most important element is any organization. The success, growth and development of organizations depend on the quality of work force they possess.

→ With the advent of globalization, liberalization and privatization leading to advancement in information, communication and technology paved way exhibiting the high level of innovation and creativity in human resource.

→ As per the views of Michael J. Jucius Human Resource is a “whole consisting of interrelated interdependent and interacting physiological, sociological and ethical components”.

→ The unique, peculiar and distinctive features of human resources are as under. It is created all other resources, it exhibits innovation and creativity, human resources alone can think, act, analyze and interpret, human resources are movable and it can work as a team.

→ In the words of E.F.L. Brech HRM as that part of management process which is primarily concerned with the human constituents of an organization.

→ The functions of human resource management may be classified. Managerial function – Planning, organizing, directing, controlling.

→ Operative function – procurement, development, compensation, retention, integration, maintenance.

→ The strategic role of human resource management is the process of acquiring, training, appraising and compensating employees and attending to their labour relation, health, safety and fairness concerns.

Ensuring the quality of work force through quality assurance

Benefits / compensation / Legal Recruitment staffing, Training Technology / HR Administration, An Human Resources subsystem Training, Communicating, quality effort using quality principles with the customer satisfaction. Mutual respect and team work in all the department in a company.

High quality system in companies with the Boards. Standardization with the guidelines all applicable to law and regulation, agreement with federal state agencies monitoring results – workforce system and contractors changes in Training. Measure the agent performance procedures to boost customer service regular training is must to development of workforce.

Describe two management techniques to improve job satisfaction

  1. To provide a positive working environment.
  2. Reward recognition
  3. Develop workers skill and knowledge, evaluate and measuring job satisfaction.
  4. Respectful treatment of employees at all levels.
  5. Job security / compensation / pay.

To prepare Human Resource Planning Schedule

  1. Analysis organization objectives.
  2. Inventory present HR’s.
  3. Forecasting demand and supply of HR.
  4. Estimating manpower gap.
  5. Formulating the final HR action plan.
  6. Monitoring control and feedback.

Analyse the ways of forecasting Human resource requirements.

HR forecasts both short term and long term staffing needs based on projected sales, office growth projecting Labour and materials, machineries needs. Forecasting the number of workers you will need. HR planning includes cost and administrative work that along with regular work.

Evaluate the shortfalls of Human resource management and its consequence

  1. Lack of support of top management.
  2. Improper utilisation of Resources .
  3. Inadequate development and Training and skill based programme inadequate information, datas related human resources.

Identify points of differences between HRM and HRD

HRM

HRD
Art of managing all aspects of the human workforce at a company. It focuses on the personal development of employees.
It refers to principles of management to manage the people working in organization. To develop skills, knowledge and competency of employees.
To improve the performance of the employees. It refers to continuous development function.
It is concerned with people only. It is concerned with development of the entire organization.

Analyse the impact of Change Management
Change management is a board discipline to ensuring that changes is implemented smoothly and it have wide impact on the organization and people within it.

  1. To adopt the changes and they have right path of training to improve quality of work force.
  2. To motivate the people move to current situation to new policy or strategy.
  3. The organization make the people ready to adopt the changes in a company.

Prescribe ways of resolving Conflict Management

To meet the employee separately to know about the problem and situation to avoid emotional feelings that will hurt company’s development misunderstanding due to different communication system. In sometimes emotional feelings should be expressed and acknowledged. To keep the conversation goal oriented.

Project ways of having a control over the operation of Trade Unions

Unions play a vital role both in securing legislated labour protections and rights such as safety, health overtime, medical leave, enforcing those rights on the job. If any labour receive below the wage in equality arise union will interfere asking higher wages for workers. They demand other benefits compensation, medical facilities and pension plan for workers in an organization.

Clearly specify the available Competency Mapping Process.

(i) To identify the organizational structure.
(ii) To conduct job analysis, then to prepare a job and description of job.
(iii) To identify the required skill set employees.
(a) Interview,
(b) Questionnaires,
(c) Aptitude
(d) Competency – Skill – knowledge
(e) Role to play selecting recruiting and retaining right people.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

Samacheer Kalvi 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI)

→ SEBI was first established in the year 1988 as a non-statutory body for regulating the securities market. It was made as an autonomous body by the Government of India on 12 May 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI has its headquarters at the business district of BandraKurla Complex in Mumbai.

→ The various objectives of SEBI Regulation of stock exchanges are protection to the investors, checking the Insider Trading and control over Brokers.

→ SEBI is the nodal agency which safeguards the interests of an investor in the Indian Financial market. SEBI performs three key functions, Quasi¬legislative, Quasi-judicial and Quasi executive.

→ SEBI has wide powers regarding the stock exchanges and intermediaries dealing in Securities, power to impose monetary penalties, power to regulate Insider Trading. SEBI is also empowered by the Finance Ministry’ to nominate the members in the Governing body of every stock exchange.

→ Dematerialization is the process by which physical shares certificates of an investor are taken back by the company/registrar and destroyed.

→ Dematerialization is done at the request of the investor. Investor will first have to open an account with a DP (Depository Participant) and then request for dematerialization of certificates through the (D.P).

→ A demat account holds all the shares that are purchased in electronic or dematerialized form. Basically a demat account is to shares what a bank account is to money.

A demat account holds the certificates of financial instruments like shares, bonds, Government securities, mutual funds and exchange traded funds (ETFS).

→ Koushikaa’s father has gifted her the shares of a large cement company with which he had been working. The securities were in physical form. She already has a bank account and does not possess any other forms of securities. She wishes to sell the shares and approached a registered broker for the purpose. Mention one mandatory detail which she will have to provide with the broker.

  1. By opening a Demat Account through this account the shares can be sold.
  2. She has mentioned total number of shares of the cement company.
  3. She can mention Name of the company, types of shares and market value of shares of the company.

→ Mr. Kulandaivel was the Chairman of Thangam Bank. The bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their share was also steadily rising. The bank was about to announce taking over the ‘Trinity Bank’.

Mr. Kulandaivel knew that the share price of Thangam Bank would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of the his rich friends Mr. Chandrasekaran and asked him to invest ₹ 5 crores in shares of his bank promising him the capital gains.

As expected, the share prices went up by 40% and the market price of Chandrasekaran’s shares was now ₹ 7 crores. He earned a profit of ₹ 2 crores. He gave ₹ 1 crore to Mr. Kulandaivel and kept ₹ 1 crore with himself. On regular inspection and by conducting enquires of the brokers involved, the Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI imposed a heavy penality on Mr.Kulandaivel. By quoting the lines from the above paragraph, identify and state any two functions that were performed by SEBI in the above case.

Regulating, controlling, inspection and inquiries of share market by SEBI.

  1. The price (market) of their shares were controlled by SEBI.
  2. On regular inspection by conducting enquires SEBI was able to detect this irregularity and imposed a heavy penality on Mr. Kulandaivel.

Collect the information on various measures taken by SEBI to protect the interests of investors since its inception.

Investor awareness program:
Investor education and protection fund. Investor Assistance and Education. He knows how to invest and he has full knowledge and complete information about the market.

Send a group of students to a trading terminal in your city to gain first hand information on securities trading and prepare a report.

  1. Identifying information and related assets plus potential threats, Vulnerabilities and impacts.
  2. Evaluating the risks.
  3. Deciding how to address or treat the risk to avoid mitigate share or accept them.
  4. Selecting appropriate security control and implementing them.
  5. Monitoring activities making adjustment as necessary to address any issues, changes improvement opportunities.
  6. To offer guidance, policies industrial, standard, software legal liability and security awareness.

Collect information about SEBI action for Investor Protection taken during last two years.

The securities Exchange Board of India has sent notices to mutual fund companies that defaulted on fixed maturity plan payments. SEBI has taken action for not fulfilling the investor, protection norms by delaying the payment due on fixed maturity plan and for giving loan against shares.

SEBI has taken action on mutual fund on several issues that occurred in the recent past. Mutual fund which defaulted on fixed maturity plan scheme (HDFC and Kotak for delay in FMP).

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 7 Stock Exchange

Samacheer Kalvi 12th Commerce Notes Chapter 7 Stock Exchange

→ Stock exchange is one of the important constituents of capital market. It is an organized market for purchase and sale of industrial and financial security. It is a convenient place where trading in securities is in a systematic manner.

→ Stock exchanges are indispensable for the smooth and orderly functioning corporate sector in a free market economy.

→ According to Husband and Dockerary “Stock exchanges are privately. organized markets which are used facilitate trading in securities ”.

→ The various function of stock exchange are ready and continuous market correct evaluation of securities protection to investors, aid to capital formation, and facilities for speculations.

→ Stock exchange is a market where securities of corporate bodies, Government and semi-Govemment bodies are bought and sold.

→ Buying and selling transactions in securities at the stock exchange are governed by the rules and regulations of stock exchange as well as SEBI guidelines.

→ Stock exchange is a particular market place where authorized brokers together daily on the floor of market called trading circles and conducting trading activities.

→ The benefits of stock exchange are classified with benefits to the community, company and investors.

→ The limitations of stock exchange are as follows. Lack of uniformity and control to stock exchanges, failure to control unhealthy speculation, allowing more than one charge in the place and no proper regulation of listing of securities on the stock exchange.

→ There are 24 stock exchanges in the country with 21 of them being regional in nature. Three others have been set up in the reforms era (NSE)(OTCEI) and (ISE) have mandate to national wide trading network.

→ Speculators in a stock market are of different types. They are named after animals as their behavior could be compared best with the behavior of animals [Bull, Bear, Stag, Lame Duck].

→ The structure of stock market in India has undergone a vast change due to the liberalization process limited by the Government. A brief description of these structures in the Indian stock market system is presented below.

National Stock Market System (NSMS)

  1. National Stock Exchange of India Limited (NSE)
  2. Stock Holding Corporation of India Limited (SHCIL)
  3. National Clearing and Depository System (NCDS)
  4. Securities Trading Corporations of India (STCI)
  5. National Securities Depositary Limited (NSDL)

Ramesh and Asaladeepesh are good friends. Ramesh is very god-fearing kind, while Asaladeepesh was an enterprising person, having practical in approach. Read the following conversation.

Ramesh: Hi, Deepesh! What are you doing?
Asaladeepesh: Hi, I am reading the newspaper – a financial market page that gives us information about the shares price.
Ramesh: Shares, that is an area of big gambles.
Asaladeepesh: No, not really! You must understand how it works.
Ramesh: Frankly speaking, I think this Capital market is all a gambling game and I don’t see any use of them.
Asaladeepesh: No, you are seriously mistaken; you do not know the importance of capital market. I will tell how it is needed for an individual and an economy.

You are required to play the role of Asaladeepesh and continue the conversation.

Ramesh: Tell me about the significance of capital.
Asaladeepesh: Business firms need large funds to undertake a project.
Ramesh: What do you mean by capital?
Asaladeepesh: The most productive use leading to growth and development of the economy.
Ramesh: I couldn’t understand the concept capital.
Asaladeepesh: Capital in the form of shares bonds and stocks.
Ramesh: How to purchase these forms of capital?
Asaladeepesh: In capital market where buyers and sellers engage in trade of financial securities like bonds, shares, and stocks.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 6 Money Market

Samacheer Kalvi 12th Commerce Notes Chapter 6 Money Market

→ Money is a market for purely short term funds. It deals with financial assets and securities whose maturity period does not exceed one year.

→ Money market is the segment of financial markets where in financial instruments having maturities of less than one year are traded.
Eg: Treasury Bills, Commercial Bills, Certificate of Deposits, Government securities etc.,

Money market serves the following objectives:
→ Providing an equilibrium mechanism for ironing out short term surplus and deficits.

→ Providing a focal point for central bank intervention for influencing liquidity in the company.

→ Providing access in uses to users of short term money to meet their requirements at a reasonable price.

→ The main characteristics of money market short term funds or financial assets called near money. Assets which can be converted into cash with minimum transaction cost. Transaction take place through phone oral communication. It comprises of several submarkets each specializing in a particular type of financing Eg: call money market, bill market.

→ Commercial bank play a dominant role in this market. There are money participants in money market. It deals with money’instruments like treasury bills, commercial bills, commercial papers etc.

→ A market for the purchase and sale of treasury bills is known as a “Treasury bills market” treasury bills may be classified into three. They are:

  1. 91 days,
  2. 182 days,
  3. 364 days. Treasury Bills.

Certificate of deposit:
→ Certificate of deposit are short term deposit instruments issued by banks and financial institutions to raise large sums of money. Certificate of deposits are issued in the form of usance promissory notes.

→ A bill of exchange issued by a commercial organization to raise money for short term needs. These bills are of 30 days, 60 days and 90 days maturity.

→ A market where by the Government or gilt – edged securities can be bought and sold is called “Government Securities Market”.

→ Government securities are issued for the purposes of refunding the maturing securities, for advance refunding securities which have not yet matured and for cash financing that is raising fresh cash resources.

How to Invest Money in Money Market Funds?

Gathering information about Money Market Funds
Learn about money market
Understand the goal of money market funds
Learn the disadvantages of money market funds
Investing in Money Market Funds
Understand the different types of Money Market Funds
Understand the purpose of Money Market Funds Compare past yields
Buying and Tracking of Money Market Funds.

Information:
Money market is a market for purely short term funds. It deals with the financial assets and securities whose maturity period does not exceed one year.

Money value:
Treasury bill minimum for one lakh. Certificate deposits or commercial paper is for minimum of? 25 lakhs.

Participants:
Brokers bankers RBI and Government.
High liquidity in money market.

Number of instruments:

  1. Inter bank call money
  2. Short term deposits up to 3 months
  3. 91 days Treasury bill
  4. 182 days Treasury bill
  5. Commercial papers.

Regulator – Central bank is the regulator of money market.
→ High level of liquidity that they offer it is easy to make money market trade across currencies maturities, debt structure as well as credit risk which makes it ideal for institution seeking to borrow or invest the short term money market.

→ A money market fund is a kind of mutual fund that invest only in high liquid instruments such as cash, cash equivalent securities and high credit rating debt based securities with short term less than 13 months (maturity).

→ These funds offer high liquidity with a very low level of risk. The goal of money market to provide a reasonable access to users of short term funds to meet their requirement quickly, adequately and at reasonable cost.

→ A money market fund generates income taxable or tax free depending on its port folio but little capital appreciation.

If you earn money, which investment plan would you like?

  1. Mutual Funds,
  2. Shares,
  3. Debentures,
  4. Treasury Bill,
  5. Commercial Bill,
  6. Certificate of Deposit. Why? Give reasons

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.

A mutual fund is a type of financial vehicle made up of a pool of money collected form many investors to invest in securities such as stocks, bonds and money market instruments.

Reasons:

Earn higher returns, creating wealth over time, offer returns on your money over time, grow your money, and reach financial goals.

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 5 Capital Market

Samacheer Kalvi 12th Commerce Notes Chapter 5 Capital Market

→ The term Capital Market refers to the facilities and institutional arrangements through which long term funds both debt and equity are raised and invested.

→ Capital Market can be defined as a “Market for borrowing and lending of long term capital funds required by business enterprises.” Capital market offers an ideal source of external finance.

→ The Capital Market is divided into two that is Primary Market and Secondary Market. Primary Market deals with those securities which are issued to the public for the first time. Primary Market facilitates capital formation.

→ Secondary Market may be defined as the market for old securities which are previously issued in the Primary Market are traded here. It covers both stock exchange and over-the-counter market.

→ The significance of Capital Market in economic development – savings and capital formation, permanent capital, Industrial growth, proper channelization of Funds and Provision of variety of services.

→ The period between 1947 and 1973 marked the development of infrastructure for Capital Market. The period between 1980 and 1992, Debenture emerged as a powerful instrument of resources mobilization in the Primary Market. There was a momentous growth in the Secondary Market.

→ SEBI emerged as an effective regulatory body for the Primary and Secondary Markets.

→ A High Powered study Group on Establishment of New Stock Exchange, A Committee on Trading in Public Sector Bonds and Units of Mutual Funds.

→ A number of institutions of finance have been established to cater to the credit, requirements of various segments of Industry and needs. (Mutual Funds, Factoring institutions, OTCEI, NSEI, NCDS, NSDL and SHCIL).

Samacheer Kalvi 12th Commerce Notes

Samacheer Kalvi 12th Commerce Notes Chapter 4 Introduction to Financial Markets

Samacheer Kalvi 12th Commerce Notes Chapter 4 Introduction to Financial Markets

→ Financial Market facilitates business firms as well as governments to raise the needed funds by issuing and selling different instruments.

→ With the help of Financial Market, all kinds of business, Government and the financial institutions can get financial assistance in terms of both short term finance and long term finance.

→ The Indian financial system can be broadly classified into organized sector and unorganized sector. Organized Sector consist of Regulators Financial Institutions, Financial Markets and Financial Services. The Unorganized Sector consists of Money Lenders, Indigenous Bankers etc.

→ A Market where in financial instruments (claims, assets and securities) are traded is known as a “Financial Market”. Financial Market transactions may be place either at a specific place or location. Eg: Stock Exchange.

→ Financial Market leads to the overall economic development.

→ Financial Markets can be classified in different ways.

→ Financial Claim, Maturity, Time of Issue of Financial Claim, Time of Delivery and Organizational Structure of Financial Market.

→ Financial Market plays a key role in arrahging investment of funds. It contribute the development of the entrepreneurial class.

→ To accelerated growth of Industrial and economic development of a Country and raising the standard of living. (Society’s Well-being)

→ A financial market renders the following functions

  1. Intermediary functions and
  2. Financial functions

→ A financial asset is one which is used for production or consumption or for further creation of assets. Financial assets can be classified differently under different circumstances.

  1. Marketable Assets,
  2. Non-Marketable Assets.

Samacheer Kalvi 12th Commerce Notes