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प्रश्न
State any four functions of 'Secondary - Market'.
उत्तर
The four functions of secondary market are enlisted below.
- One of the basic functions of secondary market is to provide liquidity and marketability to the already existing financial assets and securities. It provides a ready platform for the trading of existing securities.
- It enables a constant valuation of the securities and helps in building the demand and supply. In this way, it helps in determining the price of the securities.
- It ensures safety and fairness in transactions.
- It provides a platform for channelising the savings to the most productive use. In this way, it facilitates growth and development of the economy.
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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;
Differentiate between 'capital-market' and 'money-market' on the basis of:
Meaning;
Explain the following Money Market Instruments:
Treasury bill
Explain the following Money Market Instruments:
Commercial paper
Explain the following Money Market Instruments:
Call money
Capital market is a market for ______.
Primary market is also called as ______.
Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
Differentiate Spot Market from Future Market.
Write a note on Secondary Market.
Enumerate the different kinds of Financial Markets.
