Financial Markets
13 Board Business Studies previous year questions on Financial Markets — options free on every question; 1 include the answer & explanation free, the rest unlock with PYQ Pass.
Identify the method of flotation in the Primary Market in which a company sells securities en bloc at an agreed price to a broker:
Offer for Sale
Correct Answer: (B) Offer for Sale
Why “Offer for Sale” is correct?In Offer for Sale, the company:
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Sells securities en bloc (in bulk)
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At an agreed price
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To a broker or issuing house
Then the broker sells those securities to the public.
So the key words in the question are:
👉 “en bloc”
👉 “agreed price to a broker”
These clearly indicate Offer for Sale.
Why the other options are not correct? 1. Rights IssueShares are offered to existing shareholders, not to a broker.
2. e-IPOsThis is just an electronic method of applying for shares online.
It is not a separate method of flotation.
In this method, the company directly invites the public to subscribe to shares.
Shares are not first sold to a broker.
Which is the main problem of money market ?
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“Holders of assets can readily sell their financial assets through the mechanism of the financial market.”
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Legally SEBI was established in
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Who controls the money market in India ?
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____deals in new issued shares.
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Money market deals in
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(A) The investor has to sign a broker-client agreement.
(B) The investor has to open a Demat Account.
(C) An order confirmation slip is issued to the investor by the broker.
(D) The broker then goes online and connects to the main stock exchange.
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The market where existing securities are bought and sold is known as:
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............... creates Iiquidity.
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Capital market deals in
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“It controls insider trading, takeover bids and imposes penalties for such practices.”
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The number of stock exchanges in India at present is
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