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Question
Capital market is a market for ______.
Options
Short Term Finance
Medium Term Finance
Long Term Finance
Both Short Term and Medium Term Finance
Solution
Capital market is a market for Long Term Finance.
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RELATED QUESTIONS
‘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:
Duration
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:
Call money
Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
What is Spot Market?
Write a note on Secondary Market.
Enumerate the different kinds of Financial Markets.
