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Question
Define Stock Exchange.
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Solution
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.”
RELATED QUESTIONS
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 the following statement :
The place where buying and selling of securities takes place.
Stock exchange allow trading in _______.
______ is the latest technology driven stock exchange which was recognised in 1993.
Which of the following is a function of the stock exchange?
The organisation/institution which provides scope for speculation is:
Read the following text and answer the following questions on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
Employ more of cheaper debt may enhance the EPS. Such practice is called :
______ is a number assigned to each transaction by the stock exchange and is printed on the contract note.
Arrange the steps involved in trading procedure at the stock exchange in correct sequence:
- Settlement of order
- Opening of Demat Account
- Placing of order
- Execution of order
