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value of a warrantthe market price of a warrant fluctuates between minimum and maximum limits when the current market price of the stock ps is
when an investor purchases non-callable or non-putable convertible bonds he would be buying a non-callablenon-putable straight security
characteristics of warrantsas mentioned earlier a warrant is a variant of a call option and gives the holder a certain right to purchase shares of
bonds with warrantswarrants are usually attached with the bonds or preference shares to attract the investor the objective is to induce the potential
if the issuer company is taken over then the bondholders are likely to suffer it is due to lowering of the stock prices in the market as
we have seen earlier that there are callable bonds this is a valuable feature for the issuers who consider that their stock is
we defined the conversion premium as the difference between the market price of the convertible and the conversion value the conversion
having seen the measure used for analyzing the convertible bonds let us now examine the merits and demerits of convertible
interference of central bank in marketssome dilemmas exist in the issue of central bank intervention in the market to correct the volatilities in the
policy conflicts in debt and monetary managementco-ordination of operations is important so as to avoid differences in the policies of cash and debt
significance of secondary marketshigh liquidity and constant demand in the market need a diversified investor base with different preferences of
role of primary dealersto promote the investment activity in the government securities market several countries have adopted licensed primary dealers
issuance calendarissuance calendar gives clear and timely information about the borrowing program of the government it clearly conveys the maturity
maturity profileeven though there is no ideal theoryconcept of the maturity of the instruments some important issues that should be considered while
auction techniqueauction is the most common method to sell government securities other methods include tap sales syndication and book building
relevance of development of money marketthe development of the money market is important for the debt market especially through the process of
need to widen and deepen the government securities marketthe importance of the government securities markets can be evaluated from three angles as
prices and yieldsthe face value of the government security is rs100 or rs1000 earlier that is before 1950s the government bonds were issued at a
volume of issues of central and state government securitiesthe growth of government securities market in india and the investor response to the
stock on tapmost of the players who invest in these securities are institutions and hence the volumes are high considering that these securities are
types of government stocksissue of stock through auctionthe rbi on behalf of the government issues notification to auction government securities
advantages and disadvantages of investing in giltsadvantagesas the security is issued by the goi it has a minimal default riskinvestors have the
yieldyield represents the actual return on the investments different types of yield are discussed belowcoupon yield the fixed interest rate on a
features of government securitiesissuersthe government securities are issued by the central government state governments and semi-government
a callable bond is the sale of a call option by the investor to the issuer as it allows the issuer to repurchase the bond from the time