True or False: The secondary market involves the trading of new securities directly between issuers and investors.

False. The secondary market involves trading among existing security holders.

What role do stock exchanges play in the secondary market?

Stock exchanges provide a centralized platform for trading securities, ensuring liquidity and price transparency.

Fill in the blank: The National Stock Exchange of India (NSE) was established in ___ and became operational in ___ .

1992, 1994

What is the primary function of a broker in the stock market?

A broker buys and sells securities on behalf of clients and charges a commission for the service.

True or False: Commodity trading includes trading in physical goods like gold and silver as well as financial instruments.

True.

What is a public issue in the context of the primary market?

A public issue is an offering of shares that is open to all investors, allowing them to purchase equity in a company.

Fill in the blank: Short selling involves selling a share that is not owned by the seller, typically with the expectation that the price will ___ .

Fall

How do angel investors typically provide support to entrepreneurs?

Angel investors provide financial backing either as equity or loans, often in exchange for ownership interest or favorable loan terms.

What is the purpose of the Financial Stability Development Council (FSDC)?

The FSDC aims to maintain financial stability, enhance inter-regulatory coordination, and promote financial sector development.

Fill in the blank: Inflation-indexed bonds (IIBs) provide returns that are always in excess of ___ .

Inflation

True or False: Participatory Notes (PNs) give investors ownership rights in the underlying Indian securities.

False. PNs do not confer ownership rights; they allow investors to gain economic benefits without holding the securities.

What distinguishes a qualified foreign investor (QFI) from other foreign investors?

A QFI is a foreign investor who meets specific regulatory criteria to invest directly in Indian mutual funds and securities.

Fill in the blank: The concept of ___ allows companies to raise capital by selling shares directly to a select group of investors.

Private placement

What is the role of the Securities and Exchange Board of India (SEBI)?

SEBI regulates the securities market in India, ensuring investor protection and promoting orderly development of the market.

True or False: The Over the Counter Exchange of India (OTCEI) was India's first fully computerized stock exchange.

True.

What is a credit default swap (CDS) and its primary function?

A CDS is a financial derivative that allows one party to transfer the credit risk of a financial asset to another party.

Fill in the blank: The process of ___ involves converting loans into marketable securities that can be sold to investors.

Securitization

What distinguishes the corporate bond market from the equity market in India?

The corporate bond market has seen less participation and structural development compared to the rapidly growing equity market.