Securities Exchange Board of India (SEBI) was established in __
___________ is not a participant in money market
Capital market deals in ___________
Which of the following is not a part of capital market?
Instruments traded in capital market are__________
Capital Market is the market which is concerned with raising capital for business through various instruments. Shares, Debentures, bonds etc. are types of instruments which are traded in the capital market. Equity share and preference share are two types of shares.
What type of instruments are traded in a Money Market?
_________ Market instruments enjoy higher degree of liquidity
Money Market is the part of financial market where instruments with high liquidity and very short-term maturities are traded. It's the place where large financial institutions, dealers and government participate and meet out their short-term cash needs. They usually borrow and lend money with the help of instruments or securities to generate liquidity. Due to highly liquid nature of securities and their short-term maturities, money market is treated as safe place.
The expected rate of return of the money market is _________
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, etc. Since the money market is liquid and the maturity time is less than one year and the risk involved is low hence, money markets give a low return on investments.
A Treasury bill is an instrument of _____________
A Treasury Bill is a short-term debt obligation with a maturity of one year or less.
Treasury bills are also known as _____________
Treasury bill means one type of instrument which is issued by RBI for short term period for increase cash liquidity. treasury bill is also known as zero coupon bond because no interest paid on it. Treasury bill is also known as T-bill.
Primary and secondary markets:
Primary and secondary markets complement each other. Primary market deals with the issue of new securities. On the other hand, secondary market deals in the purchase and sale of the existing securities. That is, once the securities are issued in primary market, they are then traded in the secondary market.
When a trade bill is accepted by a commercial bank, it is known as a _____
Commercial bill is a short term, negotiable, and self-liquidating instrument with low risk. It creates a liability to make payment in a fixed date when goods are bought on credit.
Bills of exchange are negotiable instruments drawn by the seller (drawer) on the buyer (drawee) on the value of the goods delivered to him.
Such bills are called trade bills. When trade bills are accepted by commercial banks, they are called commercial bills.
A capital market is ideal when:
"Capital Markets" refers to activities that gather funds from some entities and make them available to other entities needing funds. The core function of such a market is to improve the efficiency of transactions so that each individual entity doesn't need to do search and analysis, create legal agreements, and complete funds transfer.
Money market deals in _____________________
Only institutional investors can participate in __________
Only institutional investors can participate in money market. The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods, typically up to twelve months.
Which of the following is a method of floatation?
Flotation is the process of converting a private company into a public company by issuing shares available for the public to purchase. Flotation, also known as "going public,"
Following are the methods of doing so:
1. Private placement is a way of raising capital by allotting securities to institutional investors and some selected individuals. It helps to raise capital more quickly than a public issue.
2. A prospectus is a formal document that provides details about an investment offering to the public.
3. In Offer for sale securities are done through intermediaries and are not issued directly to the public.
What is the meaning of right issue?
Under Private Placement Company sell securities to some selected institutions. From the following identify such institution.
Private placement includes sale of stock shares or bonds to pre selected investors. These pre selected investors include wealthy individual investors, banks and other financial institutions, mutual funds, insurance companies, and pension funds.
What is meant by Demat Account?
At present only two depositories are registered with SEBI _____
A depository is an entity which helps an investor to buy or sell securities such as stocks and bonds in a paper-less manner. Securities in depository accounts are similar to funds in bank accounts. The Depository Act of 1996 paved the way for the establishment of the two depositories in India, namely National Securities Depository Limited (NSDL) and other depository is the Central Depository Services Limited (CDSL).