Distinguish between Capital Market and Money Market.
Difference between capital market and money market:
Basis | Capital Market | Money Market |
---|---|---|
Meaning | It is a market dealing in securities for long-term funds. | It is a market dealing in securities of short-term funds. |
Duration | Period of maturity is more than one year. | Period of maturity ranges from one day to one year. |
Liquidity | Only actively traded securities enjoy liquidity. | In this market, there is a formal arrangement of creating liquidity. |
Safety Element | The transactions are made in the instruments issued by the financial institutions and financially strong companies. | In this market, securities of every company (big or small, financially weak or strong) are bought and sold. Hence, there is more risk involved. |
Instructions | Main instruments traded are shares, debentures, bonds, preference shares, etc. | Instruments traded are t-bills, commercial bills, Certificate of deposits, etc. |
Expected Returns |
The expected rate of return is less due to short duration. |
The expected returns are high and there is even a possibility of capital gain. |
India’s largest domestic investor Life Insurance Corporation of India has once again come to government’s rescue by subscribing 70% of Hindustan Aeronautics’ ₹4,200-crore initial public offering.
a. Which market is being reflected in the above case?
b. State which method of floatation in the above identified market is being highlighted in the case? (Primary Market)
c. Explain any two other methods of floatation. (Private Placement, Offer through prospectus, offer for sale).
Explain the objectives and functions of the SEBI.
What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?
State any two reasons why investing public can expect a safe and fair deal in the stock market. (Point w.r.t safety of Transactions – Functions of the Stock Exchange).
Explain the recent Capital Market reforms in India.
Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder. She has a Demat Account and a bank account for cash transactions in the securities market. Discuss the subsequent steps involved in the screen-based trading for buying and selling of securities in this case.
Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.
“Money Market is essentially a Market for short term funds.” Discuss.
State the objective of NSE?
Name any two details that need to be provided by the investor to the broker while filling a client registration form.
How does planning provide direction?
What is meant by staffing?
Identify the network of social relationships which arises spontaneously due to interaction at work.
What is informal communication?
State the meaning of controlling.
What is meant by capital structure?v
What is meant by management?
State any two advantages of branding to marketers of goods and services?
What makes principles of management flexible?
Under which consumer right does a business firm set up consumer grievance cell?
Explain different financial and non-financial incentives used to motivate employees of a company?
Explain the process of motivation with the help of a diagram.
State any two relief available to consumers under CPA.
Which element in the communication process involves converting the message into words, symbols, gestures etc.?
State the two important sources of recruitment.
Explain any four points regarding significance of principles of management.
What are the common barriers to effective communication? Suggest measures to overcome them.
List any two indicators of growth of an organisation.
Management is a series of continuous interrelated functions. Comment.
FSSAI (Food Safety and Standards Authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. Name and explain the Consumer Right being reinforced by this proposal.