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प्रश्न
Differentiate between `capital-market' and 'money-market' on the following basis:
Liquidity
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उत्तर
| The basis of Difference | Capital Market | Money Market |
| Liquidity | Securities are liquid only to the extent that they are tradable on stock exchanges. However, they are comparatively less liquid than money market securities. |
Securities are highly liquid as DFHI provides a ready market for them. |
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संबंधित प्रश्न
Differentiate between `capital-market' and 'money-market' on the following basis:
Duration
Differentiate between 'capital-market' and 'money-market' on the basis of:
Safety;
Differentiate between 'capital-market' and 'money-market' on the basis of:
Expected return;
Differentiate between 'capital-market' and 'money-market' on the basis of:
Meaning;
Explain the following Money Market Instruments:
Treasury bill
Explain the following Money Market Instruments:
Commercial paper
Explain the following Money Market Instruments:
Call money
State any four functions of 'Secondary - Market'.
Capital market is a market for ______.
Primary market is also called as ______.
What is Spot Market?
Differentiate Spot Market from Future Market.
Write a note on Secondary Market.
Vedansh Limited has a share capital of ₹10,00,000 divided into shares of ₹100 each.For expansion purposes, the company requires additional funds of ₹ 5,00,000. The management is considering the following alternatives for raising funds :
Alternative 1: Issue of 5000 Equity shares of ₹100 each
Alternative 2: Issue of 10% Debentures of Rs. 5,00,000
The company’s present Earnings Before Interest and Tax ( EBIT) is ₹4,00,000 p.a. Assuming that the Rate of Return of Investment remains the same after expansion, which alternative should be used by the company in order to maximise the returns to the equity shareholders. The Tax rate is 50%. Show the working.
