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प्रश्न
Justify the following statement.
Capital market is useful for the corporate sector.
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उत्तर
- The capital market is a market that provides long-term loans. It is controlled by SEBI.
- The capital market trades in shares, debentures, and mutual funds.
- The business sector issues these securities to the market and attracts savings from investors through a number of schemes.
- Through this market, corporations, industrial organisations, and financial institutions can access long-term funds from both domestic and overseas markets.
- These savings are converted into capital and used to invest in the firm.
- It helps to develop the corporate and industrial sectors. Thus, the capital market benefits the corporate sector.
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संबंधित प्रश्न
State how sources can broadly be classified into two major categories.
Answer each of these questions in about fifteen words:
What is the need of secondary market?
Primary market is also known as new issue market.
Explain the following term/concept.
Secondary market
Complete the correlation.
Primary market: New issues launched to raise capital:: ______: Old issues through stock market.
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.
Capital market do not provide _________
Primary and secondary markets
The most commonly used method for raising funds in primary market is ______.
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 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.
Identify the place where transaction happens in shares or debentures subsequent to its primary offering.
Complete the correlation:
Money market : Short-term funds :: ______ : Long-term funds.
What type of funds are raised in the capital market?
Which sectors demand long‑term funds?
Through what market/medium are long‑term funds (debt and equity) raised and invested?
Which is a capital market institution alongside development banks and commercial banks?
