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Explain the following term/concept. Secondary market - Secretarial Practice

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प्रश्न

Explain the following term/concept.

Secondary market

स्पष्ट कीजिए

उत्तर

The secondary market is more commonly known as the stock market or the stock exchange. Here, the previously issued securities are bought and sold by investors. There is no fresh issue. After the IPO, when the shares are listed on the stock exchange, they can be traded in the secondary market. In this market, securities are traded between investors. The main difference between the primary and secondary markets is that in the primary market only new securities are issued, whereas in the secondary market the already existing securities are traded.

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Types of Financial Market - Capital Market
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अध्याय 11: Financial Market - Exercises [पृष्ठ १६९]

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बालभारती Secretarial Practice [English] 12 Standard HSC Maharashtra State Board
अध्याय 11 Financial Market
Exercises | Q 2.9 | पृष्ठ १६९

संबंधित प्रश्न

Explain the recent Capital Market reforms in India.


Answer each of these questions in about fifteen words:

State how sources can broadly be classified into two major categories.


Answer each of these questions in about fifteen words

 identify the method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.


Answer each of these questions in about fifteen words

What is Right Issue?


Answer each of these questions in about fifteen words:

What is a secondary market?


Answer each of these questions in about fifteen words:

In what forms company can raise capital through primary market?


Answer each of these questions in about one hundred and fifty words:

What do you understand by capital market? How can the capital market in India be broadly classified into different categories?


Assertion and Reasoning:

  • Assertion (A): Regional stock exchanges have witnessed a sharp decline in the volume of trade.
  • Reasoning (R): Investors prefer to trade in securities listed in premier stock exchanges like BSE, NSE, etc.

Primary market is also known as new issue market.


Policy that aims at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth –


Capital market do not provide _________


What is Capital Market?


Full form of NSDL is;


Which market directly contributes to capital formation?


Read the following text and answer the following question on the basis of the same:

ISQM SOLAR Limited is searching for options to raise Rs. 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI Pvr LTD. to suggest options for the same. DHAN LAXMI PVI LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of Rs. 1,500 crores, the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. Rs. 4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of Rs. 6,000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise Rs. 8,000 crores through the online system of the stock exchange by entering into an agreement with the exchange.

Identify the reason which has made the firm raise funds from the institutional investors :


State any one advantage each for a company that opts for private placement and rights issue as a source to raise funds.


Identify the place where transaction happens in shares or debentures subsequent to its primary offering.


Complete the correlation :

Money market: Short term funds:: ______ : Long term funds


Complete the correlation.

Money market : Short term funds :: ______: Long term funds


Complete the correlation:

Money market : Short term funds :: ______ Long term funds.


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