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The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer?.

Solutions for The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.

Here you can find the meaning of The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital be readily available. Investors need to have an easy exit route. A liquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts.Q. Which of the following inference(s) is/are definitely true?a)Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.b)Active secondary market provides liquidity to the transactions in primary market.c)Passive stock market enhances availability of capital.d)Only short term buyers or sellers provide effective exit route to the primary market.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.