The major participants in the market are the Reserve Bank of India, Commercial Bank, Non-Banking Finance Companies, State Governments, Large Corporate Houses and Mutual Funds. 3. In this video you will Know about Stock Exchange.Class 12 Business Reference: 1. https://www.amazon.in/gp/product/9350588676/ref=as_li_tl?ie=UTF8\u0026camp=3638\u0026creative=24630\u0026creativeASIN=9350588676\u0026linkCode=as2\u0026tag=vcbusinesscla-21\u0026linkId=c20b8978f8c83e40c311e02ffac19ecc2. Most of the stock market uses the following 3 methods of calculating index.
(ii) Registration of collective investment schemes and mutual funds. They help to mobilise a large amount of money for short periods. It enables the raising of short term funds for earning returns. (ii) Commercial Paper A company proposing to issue capital to the public through the on-line system of the stock exchange has to enter into an agreement with the stock exchange. It is rightly said to be the pulse of the economy which reflects the state of the economy. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Whether to tap equity or debt, market whether to raise money from domestic market or international market or combination of both? It has been playing a leading role as a change agent in transforming the Indian capital market. Share prices on a stock exchange are determined by the forces of demand and supply. This provides both liquidity and easy marketability to the existing securities in the market.
This is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. (i) To regulate stock exchanges and the securities industry to promote their orderly functioning. 2. Lately, this sector is witnessing a boom due to the fact, that the Indian economy is on the rise. These can be brokers, agents, indivi… The issuer company can apply for listing of its securities on any exchange other than the exchange through which it has offered its securities. A stock exchange is a market in which existing securities are resold or traded. It gives investors the chance to disinvest and reinvest. (i) Prohibition of fraudulent and unfair trade practice like making misleading statements, manipulations, price rigging etc. Flolders of assets can readily sell their financial assets through the mechanism of financial market. It helps to raise capital more quickly than a public issue. Ans: The National Stock Exchange is the latest, most modern and technology driven exchange. Within a span of 10 year, NST was able to achieve its objectives for which it was set up.
We can see the world indices and NSE indices are moving in the same direction. (vi) Levying for or other charges for carrying out the purposes of the act. Explain the Capital Market reforms in India. (v) A Commercial Bill
(iii) Undertaking steps for investor protection. Stock Exchange Chapter 10 Class 12 Business Studies - YouTube share, debenture etc. A prospectus makes a direct appeal to investors to raise capital, through an advertisement in newspapers and magazines. The NSE was setup by leading financial institutions, banks, insurance companies and others financial intermediaries. It deals with new securities being issued for the first time. 4. 4. Functions of SEBI 4. (iv) Enabling shorter settlement cycles and book entry settlement. NCERT Solutions for Class 12th Maths The interaction between them helps to establish a price for the financial asset which is being traded in that particular market. In a financial market, the households are suppliers of funds and business firms represent the demand. (i) Establishing a nationwide trading facility for all types of securities. The issues may be under written and also required to be listed on at least one stock exchange. Ans: The overall objective of SEBI is to protect the interest of investors, promote the development and regulate the securities in market. They are issued at a price which is lower than their face value and repaid at par treasury bills are available for a minimum amount of Rs. To assist you with that, we are here with notes. These assets are close substitutes for money.
Ans: NSE provides trading in the following two segments 2. Ans: Difference between Capital and Money Market. (iii) Examing that adequate disclosure about the terms and conditions of redemption, security conversion and other relevant features of the new instrument at the time of issue is made so that an investor can make reasonable determination of risks, returns, safety and liquidity of the instrument.
Commercial paper is a short term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. (v) Meeting international benchmarks and standards. (ii) Conducting research and publishing information useful to all market segments. This leads to capital formation and economic growth. (i) Prohibiting fraudulent and unfair trade practices in the securities market unfair trade practices include price rigging, making misleading statements.
(ii) Capital Market Segment The capital market segment of NSE provides efficient and transparent platform for trading in equity, preference, debentures, exchange traded funds as well as retail government securities. What is a Treasury Bill? This exchange is established on the lines of NASDAG the OTC exchange in USA. (iii) Call Money This may be elaborated as follows What relationship do you see between the movement of indices in world markets and NSE indices? A stock exchange is a mechanism of constant valuation through which the prices of securities are determined. (vii) Performing and exercising such power under Securities Contracts Act, 1956, as may be delegated by the Government of India. (iv) Enabling shorter settlement cycles and book entry settlements. Private placement is the allotment of securities by a company to institutional investors and some selected individuals. The lead manager co-ordinates all the activities amongst intermediaries connected with the issue. SEBI registered broker’s have to be appointed for the purpose of accepting applications and placing orders with the company the issuer company should appoint a registrar to the issue having electronic connectivity with the exchange. Functions of Stock Exchange. 1. Treasury bills are available for a minimum amount of Rs.25,000. It was set up to provide small and medium companies an access to the capital market for raising finance in a cost effective manner. (i) Whole Sale Debt Market Segment This segment provides a trading platform for a wide range of fixed income securities that include central government securities, treasury bills, state development loans, bonds issued by public sector undertakings, floating rate bonds, zero coupon bonds, index bonds, commercial paper, certificate of deposit, corporate debentures and mutual funds.
Class 12 Business Studies Financial Market – Get here the Notes for Class 12 Business Studies Financial Market. The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.
They are also known as Zero Coupon Bonds issued by the RBI on behalf of the Central Government to meet its short term requirement of funds. In about 56 years of its existence the company has managed to carve out a niche for itself in this sector.
They are also known as Zero Coupon Bonds issued by Reserve Bank of India on behalf of the Central Government to meet its short term requirements of funds. into money and vice versa. Ans: NSE was setup with the following objectives 1. 1. Stock exchanges may also provide for facilities the issue and redeem of such securities and instruments and capital events including the payment of income and dividends. It is a barometer which measures overall market trend through a set of stocks which are representatives of the market. The above figures are taken from the website of National Stock Exchange of India. Ans: There is a downward swing in the stock market.
CBSE Class 12 Chemistry (iv) Contributes to Economic Growth Objectives of NSE (i) Registration of brokers and sub-brokers and other players in the market. What are the methods of floatation in Primary Market? (iv) It enables shorter settlement cycles and book entry settlements. As there is negative trend in world index, it brings negative trend in NSE index also.
(iii) To prevent trading malpractices and achieve a balance between self-regulation by the securities and its statutory regulation.
Distinguish between Capital Market and Money Market. It gives choice to the saver of different investments and thus, it helps to channelise surplus funds into the most productive use. Development Functions The shareholder are offered the ‘right’ to buy new shares in proportion to the number of shares they already possess. The trading rights are with the trading members who offer their services to the investors. (iv) Promotion of fair practices and code of conduct in securities market. (ii) Prohibiting insider trading i.e., restricts the persons having access to price sensitive information about the company to take undue advantage of it. They are highly liquid and have assured yield and negligible risk of default. (i) Mobilisation of Savings and Channelising Them into the Most Productive Uses State the objectives of the NSE. (iv) 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 and professional. 6. (ii) Controlling insider trading and imposing penalties for such practices. 5. 5.
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