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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.

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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

State how sources can broadly be classified into two major categories.


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

State the nature of money market. Who are the major participants in the money 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:

Write down the sectors of organized and unorganized market.


Assertion and Reasoning:

  • Assertion (A): Regional stock exchanges have witnessed a sharp decline in the volume of trade.
  • Reasoning (R): Investors prefer to trade in securities listed in premier stock exchanges like BSE, NSE, etc.

Justify the following statement.

Capital market is useful for the corporate sector.


Complete the correlation.

Primary market: New issues launched to raise capital:: ______: Old issues through stock market.


Bank Rate means.


What is Capital Market?


To be listed on OTCEI, the minimum capital requirement for a company is


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 :


State any one advantage each for a company that opts for private placement and rights issue as a source to raise funds.


‘While there are benefits of going public as a source of finance for a company, it also means additional obligations'.

Analyse and justify the statement.


Which of the following statements is incorrect?


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


State the following statements are True or False.

Capital market is the market for 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.


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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