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Test: Capital Market - B Com MCQ


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10 Questions MCQ Test Financial Markets and Institutions - Test: Capital Market

Test: Capital Market for B Com 2024 is part of Financial Markets and Institutions preparation. The Test: Capital Market questions and answers have been prepared according to the B Com exam syllabus.The Test: Capital Market MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Capital Market below.
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Test: Capital Market - Question 1

What is the primary function of the capital market?

Detailed Solution for Test: Capital Market - Question 1
The primary function of the capital market is to facilitate the trading of existing securities, such as stocks, bonds, and other financial instruments. It provides a platform for investors to buy and sell these securities, thereby allowing them to trade ownership stakes in companies and government entities.
Test: Capital Market - Question 2

Which of the following is a characteristic of the primary market?

Detailed Solution for Test: Capital Market - Question 2
The primary market is primarily characterized by the issuance of new securities to the public by companies and government entities. It involves the initial sale of securities to investors, often through methods like Initial Public Offerings (IPOs) and bond offerings.
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Test: Capital Market - Question 3

What is the role of SEBI in the Indian capital market?

Detailed Solution for Test: Capital Market - Question 3
SEBI (Securities and Exchange Board of India) plays a crucial role in the Indian capital market by regulating stock exchanges and ensuring fair and transparent trading practices. It also regulates various participants in the market, protects the interests of investors, and promotes the development of the securities market.
Test: Capital Market - Question 4
In the context of the capital market, what does the term "secondary market" refer to?
Detailed Solution for Test: Capital Market - Question 4
The term "secondary market" in the context of the capital market refers to the trading of existing securities among investors. It involves the buying and selling of securities that have already been issued in the primary market.
Test: Capital Market - Question 5
Which of the following is a function of the primary market?
Detailed Solution for Test: Capital Market - Question 5
One of the primary functions of the primary market is to issue new securities to raise capital for companies and government entities. This process involves offering shares, bonds, or other financial instruments to the public for the first time.
Test: Capital Market - Question 6
What is the main objective of the secondary market?
Detailed Solution for Test: Capital Market - Question 6
The main objective of the secondary market is to facilitate the trading of existing securities among investors. It provides a platform for the buying and selling of securities that have already been issued in the primary market.
Test: Capital Market - Question 7
What is the primary role of stock exchanges in the capital market?
Detailed Solution for Test: Capital Market - Question 7
Stock exchanges play a crucial role in the capital market by facilitating the trading of existing securities. They provide a marketplace where investors can buy and sell stocks, bonds, and other financial instruments.
Test: Capital Market - Question 8
Which legislation governs the primary market in India?
Detailed Solution for Test: Capital Market - Question 8
The primary market in India is primarily governed by the Companies Act, 1956. This legislation regulates various aspects of issuing, allotting, and transferring securities, as well as disclosures related to public issues.
Test: Capital Market - Question 9
What type of market is the primary market?
Detailed Solution for Test: Capital Market - Question 9
The primary market is a market for issuing new securities to the public. It involves the initial sale of securities by companies and government entities to raise capital.
Test: Capital Market - Question 10
What does SEBI stand for, and what are its main functions in the Indian capital market?
Detailed Solution for Test: Capital Market - Question 10
SEBI stands for Securities and Exchange Board of India, and its main functions in the Indian capital market include regulating the capital market, protecting the interests of investors, and promoting the development of the securities market.
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