Advertisements
Advertisements
Question
Answer each of these questions in about one hundred and fifty words:
Write down the sectors of organized and unorganized market.
Advertisements
Solution
The capital market in India may be broadly classified into:
A. Organized Markets: This segment comprises of
- Corporate enterprises
- Government and semi-government institutions requiring funds for various development activities
- Individual investors
- Corporate and institutional investors, as LIC, Banks, Finance Corporations, International financing agencies, etc.
B. Unorganized Sector:
The unorganized sector consists of
- The indigenous bankers in urban areas.
- The money lenders in rural areas.
APPEARS IN
RELATED QUESTIONS
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.
State how sources can broadly be classified into two major categories.
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:
What is a secondary 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:
State the nature of money market. Who are the major participants in the money 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’.
Answer each of these questions in about two hundred and fifty words:
“An entrepreneur can raise the required capital in the primary market.” Explain the various methods of raising the funds in the primary market by an entrepreneur.
Answer each of these questions in about fifteen words:
What is a secondary capital market?
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.
Differentiate between the money market and the capital market.
Justify the following statement.
Capital market is useful for the corporate sector.
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 –
To be listed on OTCEI, the minimum capital requirement for a company is
What are the methods of floatation in Primary Market?
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.
"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."
Identify the method of floatation of new issues in the primary market being discussed above, which the company has decided to use:
Who plays a very vital role as a financial intermediary?
Identify the place where transaction happens in shares or debentures subsequent to its primary offering.
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.
State the following statements are True or False.
Capital market is the market for 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.
Complete the correlation.
Money market : Short term funds :: ______ : Long term funds
