Definitions [1]
Define Stock Exchange.
A Stock Exchange is an institution which provides a platform for buying and selling of existing securities. According to the Securities Contracts (Regulation) Act, 1956, “Stock Exchange means any body of individuals whether incorporated or not constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.”
Key Points
Key Points: Concept of Financial Market
- Finance = management of money; includes personal, corporate and public finance.
- India’s financial system: institutions, markets, instruments and services that move funds for development.
- Financial market = place to buy and sell financial assets like bonds, shares, derivatives, government securities and foreign currency.
- Main types of financial markets: money market and capital market.
Key instruments:
- Bonds – long‑term borrowing by firms/government.
- Equity shares – ownership in a company.
- Derivatives – value based on another asset.
- Government securities – government debt with repayment promise.
- Trade bills – bills of exchange used in trade payments.
- Promissory note – written promise to pay a fixed sum later.
Important Questions [15]
- Attempt the Following:State the Characteristics of Money Market.
- The Company Has to Obtain Consent of ............................ If Issue of Debentures Exceeds Rs. 1 Crore.
- The Floor of the Stock Exchange Premises Where the Trading Or Auction of Shares Takes Place.
- Write Notes on Bombay Stock Exchange.
- An Institution Which Regulates and Controls the Activities of the Stock Exchange is Called _______.
- Write a Word Or a Term Or a Phrase Which Can Substitute Each of the Following Statements: The Highest Price Quoted by a Buyer to Buy a Specified Number of Shares Or Stock at Any Given Time.
- Write Notes on Functions of S.E.B.I.
- Write Notes on Features of Shares.
- Select the Proper Option from the Option Given Below and Rewrite the Sentences: a Market Where Existing Securities Are Resold Or Traded is Called __________ Market. (Primary)
- A Market Place Where Existing Securities Are Bought and Sold.
- The Institution Which Regulates Business in Stock Exchange.
- State, with Reason, Whether the Following Statement is True Or False. Stock Exchanges Reflect Financial Progress of the Company.
- Jobber and Stock Broker
- Write a Word Or a Term Or a Phrase Which Can Substitute the Following Statement :
- The Place Where Buying and Selling of Securities Takes Place
