onur mu wong SGMCCOSURUUDUSID
0.18. Shreya is a student of 10+2 (Commerce). Her two friends Sugandha and Sakshi are 10+2 (Non-
Medical) students. Shreya has full knowledge of capital market. Both her friends are interest in
it, but they do not haye even an iota of knowledge about it. Shreya gives them the knowledge
about capital market in the following manner:
"In order to meet its financial requirements, company issues shares. Shares are issued in capital
market. The company issue a prospectus and invites the general public to invest in shares. It
is called Initial Public Offer - IPO. It is not the case that by investing once the investors are
entrapped. If they so desire, they can sell their shares, at the current market price, to other
investors and thus can withdraw their own capital. Another important feature is that the market
in which the company issues shares has no particular place. However, the market wherein the
shareholders sell shares does have a particular place, called stock exchange.
(i) In the above paragraph two types of capital market have been mentioned. Identify them.
(ii) of the identified type of capital market give two characteristics each by way of
(1+41
quotation.
Answers
Answer:
In order to meet its financial requirements, company issues shares. Shares are issued in
capital market. The company issues a prospectus and invites the general public to invest in
shares. It is called initial public offer IPO. It is not the case that by investing once the
investors are entrapped. If they so desire, they can sell their shares, at the current market
price, to other investors and thus can withdraw their own capital. Another important feature
is that the market in which the company issued shares has no particular place. However, the
market where in the shareholders sale shares does have a particular place, called stock
exchange.”
(a) In the above paragraph 2 types of capital market have been mentioned. Identify them.
(b) Of the identified type of capital market give two characteristics each by way of
quotation.
Explanation:
In order to meet its financial requirements, company issues shares. Shares are issued in
capital market. The company issues a prospectus and invites the general public to invest in
shares. It is called initial public offer IPO. It is not the case that by investing once the
investors are entrapped. If they so desire, they can sell their shares, at the current market
price, to other investors and thus can withdraw their own capital. Another important feature
is that the market in which the company issued shares has no particular place. However, the
market where in the shareholders sale shares does have a particular place, called stock
exchange.”
(a) In the above paragraph 2 types of capital market have been mentioned. Identify them.
(b) Of the identified type of capital market give two characteristics each by way of
quotation.
Answer:
Shreya is a student of 10+2 (Commerce). Her two friends Sugandha and Sakshi are
10+2 (Non-Medical) students. Shreya has full knowledge of the capital market. Both
her friends are interested in it, but they do not have even an iota of knowledge about
it. Shreya gives them knowledge about the capital market in the following manner:
In order to meet its financial requirements, the company issues shares. Shares are
issued in the capital market. The company issued a prospectus and invites the general
public to invest in shares. It is called an Initial Public Offer - IPO. It is not the case
that by investing once the investors are entrapped. If they so desire, they can sell their
shares, at the current market price, to other investors and thus can withdraw their own
capital. Another important feature is that the market in which the company issues
shares has no particular place. However, the market wherein the shareholders sell
shares does have a particular place, called stock exchange.
i. In the above paragraph, two types of capital market have been mentioned.
Identify them.
ii. Of the identified type of capital market give two characteristics each by way
of quotation.