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Questions
What is meant by Stock Exchange?
What do you understand by Stock Exchange?
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Solution
A Stock Exchange is an organisation that offers a platform for stockbrokers and traders to buy and sell shares, debentures, and other securities. It serves as a marketplace where buyers and sellers of securities issued by the government, financial institutions, and corporate entities come together, facilitating the trading of these financial instruments.
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 _______.
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
Explain the features of stock exchange.
Which of the following is a function of the stock exchange?
NSE and BSE are types of ______.
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:
- Settlement of order
- Opening of Demat Account
- Placing of order
- Execution of order
