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प्रश्न
State any one advantage each for a company that opts for private placement and rights issue as a source to raise funds.
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उत्तर
Private placement: The company can keep its confidentiality as at times they do not wish to disclose information to the open market.
Rights Issue: It does not require any brokers, agents, underwriters, prospectus or enlistment, etc.
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संबंधित प्रश्न
Answer the following question:
An investor wanted to incest RS. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose he came to know that it was not possible.
Identify the reason why the investor could not invest in the Treasury Bill.
Differentiate between ‘primary market’ and ‘secondary market’ on any five basis.
Explain the recent Capital Market reforms in India.
Answer each of these questions in about fifteen words:
Which sources provide the supply for long-term funds?
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:
What is a secondary market?
Answer each of these questions in about fifteen words:
What is the need of secondary market?
High Order Thinking Skills
Why primary market is also known as new issue market? Give one reason.
Differentiate between the money market and the capital market.
Primary market is also known as new issue market.
Explain the following term/concept.
Secondary market
Capital market do not provide _________
What is Capital Market?
Primary and secondary markets
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 :
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.
Complete the correlation.
Money market : Short term funds :: ______ : Long term funds
Complete the correlation:
Money market : Short term funds :: ______ : Long term funds
What does the capital market help support as an important part of the financial system?
Which sectors demand long‑term funds?
What reaches the business sector and public through capital market channels?
Which pair names banks that form part of the capital market?
