Capital Market

Complete the correlation:

Money market : Short term funds :: ______ Long term funds.

Complete the correlation :

Money market: Short term funds:: ______ : Long term funds

Read the following text and answer the following question on the basis of the same:

ISQM SOLAR Limited is searching for options to raise Rs. 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI Pvr LTD. to suggest options for the same. DHAN LAXMI PVI LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of Rs. 1,500 crores, the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. Rs. 4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of Rs. 6,000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise Rs. 8,000 crores through the online system of the stock exchange by entering into an agreement with the exchange.

Identify the method of floatation of new issues in the primary market, not taken up by ISQM SOLAR LTD.:

Justify the following statement.

Capital market is useful for the corporate sector.

Answer each of these questions in about fifteen words:
Define capital market.

Answer each of these questions in about fifteen words:

What is a secondary market?

Answer each of these questions in about one hundred and fifty words:

Explain how capital markets are the most important source of raising finance for an entrepreneur.

Answer each of these questions in about one hundred and fifty words:

Write down the sectors of organized and unorganized market.