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Question
Discuss the characters of a Capital Market.
Solution
Following are the nature/characteristic of a capital market:
- Securities Market: The dealings in a capital market are done through the securities like
shares, debentures, etc. The capital market is thus called the securities market. - Price: The price of the securities is determined based on the demand and supply prevailing in the capital market for securities.
- Participants: There are many players in the capital market. The participants of the capital market include individuals, corporate sectors, Govt., banks and other financial institutions.
- Location: Capital market is not confined to certain specific locations, although it is true that parts of the market are concentrated in certain well-known centers known as Stock Exchanges. It has its impact on the overall economy, wherever suppliers and users of capital get together and do business.
- Market financial Assets: Capital market provides a transaction platform for long-term financial assets.
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Match the TERMS in Column I with their corresponding MEANING or EXPLANATION in Column II.
| Column I | Column II | ||
| (a) | Fixed capital | (i) | Investment in current assets |
| (b) | Working capital | (ii) | Assets which get converted into cash or cash equivalents within one year |
| (c) | Fixed assets | (iii) | Assets which remains in the business for more than one year |
| (d) | Current assets | (iv) | Investment in long-term assets |
It has been made compulsory to settle all trades within how many days of the trade date on a rolling settlement basis?
Hemu' s mother gifted her shares of a large IT company. The securities were in physical form. She has a bank account but does not possess any other forms of security. She wanted to sell the shares and approached a registered broker. Which of the following is a mandatory detail which she needs to provide the broker?
