bonds and stocks

1. NIPAM
CHAIRMAN - PARAMDEEP SINGH
CEO - NITISHA BHARDWAJ
CFO - ANJALI
CMO - MEENAKSHI PARNAMI
CCO - MANIRAT

2. BONDS

3.  Bond is a debt security
in which the authorized issuer owes the holders a debt
 and is obliged to pay interest
 and repay the principal at a later date, termed maturity
it is a formal contract to repay borrowed money with interest at fixed
intervals
The holder of bond is called lender ( creditor )
The issuer of the bond is called borrower (lender)
 interest is termed as coupon

5. WHAT IS A USE OF A BOND ?
 Bonds provide the borrower with external funds to finance
long-term investments
 In the case of government bonds, to finance current
expenditure.
 Lender gets risk free Investment.

6. BONDS AND STOCKS ARE BOTH SECURITIES BUT
THERE IS A MAJOR DIFERENCE IN BOTH
Stockholders have an equity stake in the company ( they are owners)
Bondholders have credit stake in the company ( they are lenders )
Bonds have maturity time ( redemption time )
Stocks may be outstanding indefinitely.

7. TYPES OF BONDS
 INFRASTRUCTURE BONDS
CAPITAL GAINS BONDS
ZERO COUPON BONDS

8. INFRASTRUCTURE BONDS
 They are same as other bonds available in investment market
Difference is only this the funds collected through the sale of these bonds is used for
the infrastructural development, highway projects, railways project.
 Have fixed rate of interest
Have tax deduction upto 20,000 for 1 financial year ( 80 CCF )
Long term investment , have maturity period 10-15 years
 Pan card , address proof , demat ac is required to apply.
Only govt. companies can issue these
Major provider IDFC ( infrastructure dev finance company )

9. CAPITAL GAINS BONDS
Sect 54EC:
•Any person
•Tax exemption
•Bonds issued by:
1. NHAI
2. REC
•Payment 6 months
•Lock in 3year
•GUARANTEED RETURNS

10. ZERO COUPON
BONDS BONDS
 DEEP DISCOUNT
 DISCOUNT
 MATURITY
 LONGER MATURITY ->LESSER ISSUE PRICE
 NO CASH INFLOW