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Question
How is price determined in a Capital Market?
Solution
The price of the securities is determined based on the Demand and Supply prevailing in the capital market for securities.
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| 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 |
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