Tag: capital markets

Questions Related to capital markets

Stock exchange leads to _________ as prices of securities with a variable return continue to increase over long term.

business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

  1. pricing of securities

  2. liquidity

  3. spreading of equity cult

  4. capital formation

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Correct Option: D
Explanation:

Stock exchange leads to capital formation as prices of securities with a variable return continue to increase over long term. Stock exchange has a provision to list the securities for trading. This is a service given to corporate sector. Stock exchange provides services like, wide dissemination of prices of securities.

Sale of securities after the trading hours of the stock exchange is known as _______________.

business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

  1. Short selling

  2. Stop loss

  3. Kerb dealing

  4. Profit taking

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Correct Option: C
Explanation:

Sale of securities after the trading hours of the stock exchange is known as Kerb dealing. Kerb dealing or Kerb trading occurs outside of the general market operations, commonly through the use of computers or telephones after the official exchanges have closed.

Stock exchange deals with the _________________.

business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

  1. Second-hand securities

  2. Issue of equity shares

  3. Issue of preference shares

  4. Issue of debentures

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Correct Option: A
Explanation:

Stock exchange deals with the second hand securities. Stock exchange works through a network of exchanges. Companies list their stock on an exchange in order to raise money to expand their business and investors purchase those shares.

Which of the following are secondary market intermediaries for corporate securities in India?
I. Investors
II. Jobbers
III. Brokers and sub-brokers
IV. Portfolio consultants

business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

  1. I, II and III only

  2. II, III and IV only

  3. II and III only

  4. III and IV only

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Correct Option: B

Match the items of List-I with the items of List-II and select the correct answer:

List-I List-II
(i) Private ownership and Free Enterprise (a) Secondary Market
(ii) Government ownership and Central Authority (b) Capitalism
(iii) The market for the sale and purchase of previously issued securities (c) Primary Market
(iv) The market for new long term capital (d) Socialism
business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

  1. $(i) - (b), (ii) - (d), (iii) - (a), (iv) - (c)$

  2. $(i) - (a), (ii) - (b), (iii) - (c), (iv) - (d)$

  3. $(i) - (b), (ii) - (d), (iii) - (c), (iv) - (a)$

  4. $(i) - (a), (ii) - (c), (iii) - (b), (iv) - (d)$

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Correct Option: A