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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. - Entrepreneurship

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प्रश्न

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.

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उत्तर

 Capital markets are the most important source of raising finance for the entrepreneurs. This market:

  1.  Mobilises the financial resources on a nation-wide scale.
  2. Secures the much required foreign capital and know-how to promote economic growth at a faster rate.
  3.  Ensures the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the under developed priority areas where there is an urgent need to promote balanced and diversified industrialization. The needs of entrepreneurs who actually use the savings for productive purposes are varied. The capital market satisfies the tastes of savers and the needs of investors through its financial instruments and institutions.
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अध्याय 6: Resource Mobilization - Section B: Financial Markets [पृष्ठ २४६]

APPEARS IN

सीबीएसई Entrepreneurship [English] Class 12
अध्याय 6 Resource Mobilization
Section B: Financial Markets | Q 3.2 | पृष्ठ २४६

संबंधित प्रश्न

Explain the recent Capital Market reforms in India.


Answer each of these questions in about fifteen words:

Name the sources of demand for capital comes from.


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


Answer each of these questions in about fifteen words:

Name the two players in the capital market.


Answer each of these questions in about fifteen words

 identify the method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.


Answer this question in about fifteen words:

What is Right Issue?


Answer each of these questions in about fifteen words:

What is the need of secondary market?


Answer each of these questions in about fifteen words:

In what forms company can raise capital through primary market?


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

What do you understand by capital market? How can the capital market in India be broadly classified into different categories?


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

What is meant by primary market? Briefly explain the concept of ‘Right Issue for existing companies’.


High Order Thinking Skills

Why primary market is also known as new issue market? Give one reason.


Answer each of these questions in about fifteen words:

What is a secondary capital market?


Primary market is also known as new issue market.


Explain the following term/concept.

Secondary market


Policy that aims at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth –


Assertion (A): Stock exchange is an important constituent of the money market.

Reasoning (R): Stock exchange is an organization in which stocks, bonds, commodities etc. are traded.


Bank Rate means.


What are the methods of floatation in Primary Market?


Full form of NSDL is;


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 reason which has made the firm raise funds from the institutional investors :


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.

How much money was raised by the company through E-IPO's?


Identify and explain the following concept:

Raju’s father invests his money in a market for long term funds both equity and debt raised within and outside the country.


Identify the place where transaction happens in shares or debentures subsequent to its primary offering.


Which among the following is NOT a method of raising the required capital in the primary market?


In its vital role as a financial intermediary, capital markets satisfies the tastes of the savers and the need of the investors. Evaluate the given statement.


Complete the correlation:

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


Complete the correlation.

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


Complete the correlation:

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


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