Financial Market Business Studies - Financial Market

If a firm requires to two crores for six months time to keep the stock of raw material, it should approach

Call money, treasury bill, C.R., etc. are the instruments of

The safest instrument of money market is

To meet floatation cost, firms generally issue the following instrument of money market.

Which instrument of money market is also called zero coupon bond?

Reshu's father has gifted her shares of a large cement company, with which he had been working. The securities were in physical form. She already has a bank account and does not possess any other forms of securities.She wished to sell the shares and approached a registered broker for the purpose. Mention one mandatory detail which she will have to provide with the broker.

"Stock market quotations contribute to better allocation of capital and promoting the habits of savings and investments". Explain.

What function does financial market perform?

Which money market security is also known as zero coupon bond?

Enumerate the objectives of SEBI.

"Money market is essentially a market for short-term funds". In the light of this statement, state any three features of money market.

Explain any four functions of financial market.Or"A financial market is for the creation and exchange of financial assets." Explain any two of its functions.

Saqib Ltd. is a large creditworthy company operating in the Kashmir Valley. It is an export oriented unit, dealing in exclusive embroidered shawls. The floods in the Valley have created many problems for the company. Many craftsmen and workers have been dislocated and raw material has been destroyed. The firm is therefore, unable to get an uninterrupted supply of raw material, and the duration of the production cycle has also increased. To add to the problems of the organisation, the suppliers of raw material who were earlier selling on credit are asking the company, for advance payment or cash payment on delivery. The company is facing a liquidity crisis. The CEO of the company feels that taking a bank loan is the only option with the company to meet its short term shortage of cash.As a finance manager of the company, name and explain the alternative to bank borrowing that the company can use to resolve the crisis.

Supriya's grandmother who was unwell, called her and gave her a gift packet. Supriya opened the packet and saw many crumpled share certificates inside. Her grandmother told her that they had been left behind by her late grandfather.As no trading is now done in physical form, Supriya wants to know the process by adopting which she is in a position to deal with these certificates.(a) Identify and state the process.(b) Also give two reasons to Supriya why dealing with shares in physical form had been stopped.

Explain the capital market reforms in India.

Few years ago, there were many malpractices, unfair trade practices and frauds and scams were taking place in Stock Exchange. All these affected investor's confidence, faith and trust in Stock Exchange. The Government of India decided to set up a separate body for this purpose who was given control of stock exchange. This separated ownership and control of stock exchange.(i) Name the concept which separates the ownership and control of stock exchange.(ii) Name the body set up by the government of India to contract the stock exchange.(iii) State the objectives of that regulating body.

What is REPO rate? How can it result in lowering the rate of interest on lo

The Director of Pico Limited decided to declare bonus issue of equity shares to the shareholders in its Annual General Meeting. Immediately one of the Director purchases 20,000 shares from market @ 30 per share and sold them @ 100 per share as bonus issue was declared and made capital gain from it.

To promote and develop activities in stock exchange, SEBI performs_________ function.

National Stock Exchange Index is called_________.

Bombay Stock Exchange Index is called_________.

The day when stock exchange delivers the share or makes payment to the other broker is called_________.

The day when investor has to deliver shares sold or pay cash for shares bought is called_________.

Commercial bill and treasury bill are same.

The interest paid on call money is called call rate.

Banks and financial markets are competing intermediaries in financial system.

Capital market is a branch of money market.

Call money is also called Inter bank money.

Mohan wants to sell 50 shares of Tata Motors. Explain the trading procedure of shares.