English

State Any Two Reasons Why Investing Public Can Expect a Safe and Fair Deal in the Stock Market. (Point W.R.T Safety of Transactions – Functions of the Stock Exchange). - Business Studies

Advertisements
Advertisements

Question

State any two reasons why investing public can expect a safe and fair deal in the stock market. (Point w.r.t safety of Transactions – Functions of the Stock Exchange).

Short Note

Solution

1. To protect the rights and interests of investors, particularly individual investors and to guide and educate them.

2. To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc., with a view to making them competitive sphere.

shaalaa.com
  Is there an error in this question or solution?
Chapter 10: Financial Markets - Very Short Answer [Page 278]

APPEARS IN

NCERT Business Studies - Part 2: Business Finance and Marketing [English] Class 12
Chapter 10 Financial Markets
Very Short Answer | Q 3 | Page 278

Video TutorialsVIEW ALL [2]

RELATED QUESTIONS

State, with reason, whether the following statement is True or False.

Stock exchanges reflect financial progress of the company.


What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?


What are the functions of the Stock Exchange?


Write a word or a term or a phrase which can substitute the following statement :

The place where buying and selling of securities takes place.


Explain the features of stock exchange.


_____ is the oldest stock exchange in the world.


There are _____ stock exchange in the country.


Stock exchanges deal in _________.


Stock exchange allow trading in _______.


Define Stock Exchange.


______ is the latest technology driven stock exchange which was recognised in 1993. 


The organisation/institution which provides scope for speculation is:


______ refers to the time period between placing an order its receipts in stock. 


Read the following text and answer the following questions on the basis of the same:

Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.

Employ more of cheaper debt may enhance the EPS. Such practice is called :


Arrange the steps involved in trading procedure at the stock exchange in correct sequence:

  1. Settlement of order
  2. Opening of Demat Account
  3. Placing of order
  4. Execution of order

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×