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प्रश्न
Differentiate Spot Market from Future Market.
उत्तर
| Basis for difference | Spot Market | Future Market |
| 1. Delivery | Delivery of Financial | Instruments immediately Delivery of Financial Instruments in Future. |
| 2. Settlement | The settlement is completed immediately. | The settlement is completed in the predetermined time frame in the future. |
| 3. Payment | Payment of cash occurs immediately. | Payment of cash occurs in the future. Not immediately. |
| 4. Known as | It is also known as Cash Market. | It is also known as the forwarding Market. |
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संबंधित प्रश्न
Differentiate between `capital-market' and 'money-market' on the following basis:
Investment outlay
Differentiate between `capital-market' and 'money-market' on the following basis:
Duration
Differentiate between `capital-market' and 'money-market' on the following basis:
Liquidity
Differentiate between 'capital-market' and 'money-market' on the basis of:
Expected return;
Differentiate between 'capital-market' and 'money-market' on the basis of:
Meaning;
Explain the following Money Market Instruments:
Commercial paper
What is Debt 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.
