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प्रश्न
Primary market is also known as new issue market.
विकल्प
True
False
उत्तर
This statement is True.
Explanation:
In Primary market, companies sell their shares, Debentures, etc. for the first time to raise fresh capital. It exclusively deals with the issue of new securities, i.e. securities that are issued to investors for the very first time. Hence this market is also known as New Issues Market.
संबंधित प्रश्न
Answer each of these questions in about fifteen words:
Which sources provide the supply for long-term funds?
Answer each of these questions in about fifteen words:
Define capital market.
Answer each of these questions in about fifteen words
What is Right Issue?
Answer each of these questions in about fifteen words:
What is the need of 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:
Explain how capital markets are the most important source of raising finance for an entrepreneur.
Answer each of these questions in about one hundred and fifty words:
What is meant by primary market? Briefly explain the concept of ‘Right Issue for existing companies’.
Explain the following term/concept.
Secondary 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 –
What is Capital Market?
To be listed on OTCEI, the minimum capital requirement for a company is
The most commonly used method for raising funds in primary market 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 method of floatation of new issues in the primary market, not taken up by ISQM SOLAR LTD.:
State any one advantage each for a company that opts for private placement and rights issue as a source to raise funds.
Identify and explain the following concept:
Raju’s father invests his money in a market for long term funds both equity and debt raised within and outside the country.
Which of the following statements is incorrect?
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
