Business Studies 1 Marks Question

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.

Give the full form of SEBI.

How many regional stock exchanges are there in India? Name the oldest one.

Explain the term 'water the equity'.

What do you mean by the term 'going public'?

Name the common instruments of capital market.

Name any two national level stock exchanges.

Name the two segments of capital market.

What is meant by capital market?

Name the market which provides short term finance.

Name any two instruments of money market.

In secondary market sale of securities takes place between investors only, then how does this market contribute for capital formation?

Why is secondary market considered as market for second hand securities?

What are the different ways of issuing securities in primary market?

Name the market where companies issue new securities.

A Stock Exchange is a place where financial assets can be converted into cash. It helps in fixing the market value of securities and helps to know the economic growth of any country.(i) State the functions of state exchange refused in above para.(ii) State any other two functions of Stock Exchange.

What do you mean by Bourse?

What do you mean by penny stock?

Who provides protection and guidelines to the investors?

Who is the borrower of call money?

Shares are given in the ratio of 1:1. What is this type of issue?

What is Badla?

What is dematerialisation (demat)?

What is the minimum amount of Treasury Bill?

How is the price of securities determined in the secondary market?

Who determines the prices of new IPO?

Who issues the Treasury Bill?

Why are money market instruments more liquid as compared to capital market instruments?

Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should he approach?

Identify the markets highlighted in following statements:(i) This market directly contributes to capital market.(ii) This market deals in instrument whose maturity is upto one year.(iii) It deals in medium and long term securities.(iv) It is also known as Stock Exchange and deals in sale and purchase of previously issued securities.(v) It requires less investment as value of securities is generally low.

Bandhu Limited is a real estate company, which was formed in 1960 . In about 55 years of its existence, the company has managed to carve out a niche for itself in this sector. In order to establish itself in India, the company decided to list its securities on BSE, in order to raise money through India market.State the functions performed by SEBI that make investors comfortable and secured in dealing with Bandhu Ltd.

Name the financial instrument which may be used in the following situations:(i) A company needs funds to meet floatation cost in order to issue equity shares in the market.(ii) The instrument that is issued during the period of tight liquidity when the deposit growth of bank is slow but demand for credit is high.(iii) These are also known as zero coupon bonds and are issued by RBI on the behalf of central government.(iv) It is used by one bank having surplus funds to meet the funds requirements of another bank facing shortage of funds.

Charu is a chartered accountant in Prakash Ltd. During the course of meeting with directors she came to know that as against the previous years, this year company is going to declare handsome dividend offer. It is observed that when such news becomes public then the sharemarket jumps up. Considering it, Charu purchased large number of company's shares before this news reached the public.1. Identify the type of malpractice used by Charu.2. Name the authority which regulates such behaviour. Write any three other functions of this authority.