Question

explain the following buffer stock and issue price

Answer 1

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level). Stable prices help maintain farmers' incomes and improve the incentive to grow legal crops. Stability enables capital investment in agriculture needed to lift agricultural productivity. Farming has positive externalities it helps to sustain rural communities.
 buffer stock created by the government? (i) A buffer stock of food grains is created by the government, so that it can be distributed in food deficit areas and among the poorer strata of society at a price much lower than the market pric




The issue price is the price at which shares are offered for sale when they first become available to the public. Shares in the company slipped below their issue price on their first day of trading. ... The issue price is the priceat which shares are offered for sale when they first become available to the public.