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प्रश्न
Differentiate between 'capital-market' and 'money-market' on the basis of:
Meaning;
उत्तर
| Basis | Capital Market | Money Market |
| Meaning | The capital market is a market for medium and long-term funds which includes all the organisations and instruments that give long-term and medium-term funds and does not include instruments that provide short-term funds |
The money market is a market for short-term funds for a period of up to one year. |
संबंधित प्रश्न
‘Zaira Ltd.’ is a large and creditworthy company manufacturing air-conditioned buses for the Indian market. It now wants to export these buses to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap the money market.
a. Name and explain the money market instrument the company can use for the
above purpose.
b. What is the duration for which the company can get funds through this instrument?
c. State any other purpose for which this instrument can be used.
Differentiate between `capital-market' and 'money-market' on the following basis:
Investment outlay
Differentiate between `capital-market' and 'money-market' on the following basis:
Liquidity
Differentiate between 'capital-market' and 'money-market' on the basis of:
Safety;
Differentiate between 'capital-market' and 'money-market' on the basis of:
Expected return;
Explain the following Money Market Instruments:
Call money
State any four functions of 'Secondary - Market'.
Capital market is a market for ______.
Primary market is also called as ______.
What is Spot Market?
Differentiate Spot Market from Future Market.
Write a note on Secondary Market.
Enumerate the different kinds of Financial Markets.
Vedansh Limited has a share capital of ₹10,00,000 divided into shares of ₹100 each.For expansion purposes, the company requires additional funds of ₹ 5,00,000. The management is considering the following alternatives for raising funds :
Alternative 1: Issue of 5000 Equity shares of ₹100 each
Alternative 2: Issue of 10% Debentures of Rs. 5,00,000
The company’s present Earnings Before Interest and Tax ( EBIT) is ₹4,00,000 p.a. Assuming that the Rate of Return of Investment remains the same after expansion, which alternative should be used by the company in order to maximise the returns to the equity shareholders. The Tax rate is 50%. Show the working.
