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Primary market is also known as new issue market. - Secretarial Practice

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प्रश्न

Primary market is also known as new issue market.

विकल्प

  • True

  • False

MCQ
सत्य या असत्य
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उत्तर

This statement is True.

Explanation:

In Primary market, companies sell their shares, Debentures, etc. for the first time to raise fresh capital. It exclusively deals with the issue of new securities, i.e. securities that are issued to investors for the very first time. Hence this market is also known as New Issues Market.

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अध्याय 11: Financial Market - Exercises [पृष्ठ १६८]

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बालभारती Secretarial Practice [English] Standard 12 Maharashtra State Board
अध्याय 11 Financial Market
Exercises | Q 1 D) 4. | पृष्ठ १६८

संबंधित प्रश्न

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:

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’.


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.

Identify & explain the concept from the given illustration.

Kerala-based company K Jewellers intends to raise ₹1000 crore by fresh issuance of shares.


Primary and secondary markets


What are the methods of floatation in Primary Market?


The most commonly used method for raising funds in primary market 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 method of floatation of new issues in the primary market, not taken up by ISQM SOLAR LTD.:


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.


Which of the following statements is incorrect?


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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