English

State Any Two Reasons Why Investing Public Can Expect a Safe and Fair Deal in the Stock Market. (Point W.R.T Safety of Transactions – Functions of the Stock Exchange). - Business Studies

Advertisements
Advertisements

Question

State any two reasons why investing public can expect a safe and fair deal in the stock market. (Point w.r.t safety of Transactions – Functions of the Stock Exchange).

Short/Brief Note
Advertisements

Solution

1. To protect the rights and interests of investors, particularly individual investors and to guide and educate them.

2. To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc., with a view to making them competitive sphere.

shaalaa.com
  Is there an error in this question or solution?

Video TutorialsVIEW ALL [2]

RELATED QUESTIONS

The place where buying and selling of securities takes place


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. 


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. 


What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?


Name any two details that need to be provided by the investor to the broker while filling a client registration form.


What are the functions of the Stock Exchange?


Jobber and stockbroker


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 _______.


What is meant by Stock Exchange?


The total number of Stock Exchange in India is


______ is the latest technology driven stock exchange which was recognised in 1993. 


When the stock market is bullish, a company must go for which of the following?


______ refers to the time period between placing an order its receipts in stock. 


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 :


Arrange the steps involved in trading procedure at the stock exchange in correct sequence:

  1. Settlement of order
  2. Opening of Demat Account
  3. Placing of order
  4. Execution of order

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×