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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

Explain the recent Capital Market reforms in India.


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:

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


Differentiate between the money market and the capital market.


Explain the following term/concept.

Secondary market


Justify the following statement.

Capital market is useful for the corporate sector.


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.


Full form of NSDL is;


Which market directly contributes to capital formation?


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.


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


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


What type of funds are raised in the capital market?


Which group supplies long‑term funds to the capital market?


Which pair names banks that form part of the capital market?


Which is a capital market institution alongside development banks and commercial banks?


Which group contains capital market instruments?


Which pair is also included among capital market instruments?


Capital markets deal with which funds?


Under what guidance do capital markets operate freely?


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