Secretarial Practice · Class 12 Commerce
Ch 11Financial Market — Class 12 Secretarial Practice, concept-first.
Every company studied so far in this Maharashtra HSC Secretarial Practice syllabus — whether raising equity through shares, borrowing through debentures, or accepting deposits from members and the public — has needed one thing in common: a place, or more accurately a mechanism, where its need for funds can actually mee…
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Meaning and Classification of Financial Market
A financial market is the mechanism through which persons with surplus funds are brought together with persons needing funds, against a financial claim, performing functions such as mobilising savings, enabling capital f…
Most relevant Q&A
- What is a Financial Market? Explain its significance/functions.Free
- A financial market is a market in which people trade ______ and derivatives at low transaction costs. (a) Gold (b) Financial securities (c)…Preview
- Distinguish between money market and capital market.Preview
- Select the correct option from the bracket: | Group ‘A’ | Group ‘B’ | | --- | --- | | (a) .............. | (1) Deposit from Members | | (b)…Preview
- Distinguish between the following: Primary market and Secondary marketPreview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning and Significance of a Financial Market
Every company studied so far in this Maharashtra HSC Secretarial Practice syllabus — whether raising equity through shares, borrowing through debentures, or accepting deposits from members and the pub…
Classification of Financial Markets — Money Market and Capital Market
A financial market is not a single, undifferentiated place — different users need funds for very different lengths of time, and a market that serves an overnight cash shortfall cannot sensibly be the…
Money Market — Meaning and Features
The money market may be defined as the market for short-term financial assets that are close substitutes for money — instruments with a maturity of one year or less, which can be converted into cash q…
Instruments of the Money Market
A student of Secretarial Practice should be able to identify and explain the principal instruments through which short-term funds actually change hands in the money market.
Participants in the Money Market
Because the money market is essentially a wholesale, institution-to-institution market, its participants are almost entirely large financial and non-financial institutions rather than individual retai…
Capital Market — Meaning and Features
The capital market may be defined as the segment of the financial market that deals in medium- and long-term funds — funds raised for a period exceeding one year, and, in the case of equity share capi…
Primary Market — Methods of Raising Capital
The primary market, also called the new issue market, is that segment of the capital market in which securities are offered and sold to investors for the very first time, and in which the issuing comp…
Secondary Market — Stock Exchange
The secondary market is that segment of the capital market in which securities already issued in the primary market — and already held by one investor or another — are subsequently bought and sold amo…
SEBI — Regulator of the Capital Market
The Securities and Exchange Board of India (SEBI) is the statutory regulatory authority for the securities (capital) market in India.
Distinction Between Money Market and Capital Market, and Between Primary Market and Secondary Market
Bringing together, in one place, the money market and capital market studied separately earlier in this chapter — and, within the capital market, its primary and secondary segments — makes it far easi…
Role of the Secretary in the Company's Interface with the Financial Market
Every decision this chapter has described — choosing between a money-market instrument and a capital-market one, choosing among an IPO, an FPO, a rights issue or a private placement, or getting the co…
Exercises
+−Show 11 questionsHide questions11 questions
- Q1What is a Financial Market? Explain its significance/functions.Free
- Q2Explain the meaning and features of the money market.Free
- Q3Explain any four instruments of the money market.Free
- Q4Explain the participants in the money market and the role of the RBI in it.Preview
- Q5Explain the meaning and features of the capital market.Preview
- Q6What is the Primary Market? Explain the methods of raising capital in the primary market.Preview
- Q7What is the Secondary Market? Explain the functions of a stock exchange.Preview
- Q8Distinguish between Money Market and Capital Market.Preview
- Q9Distinguish between Primary Market and Secondary Market.Preview
- Q10Explain SEBI as the regulator of the capital market. State its objectives and functions.Preview
- Q11Explain the role of the Secretary in the company's dealings with the financial market.Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 20 questionsHide questions20 questions
- Q1Correct the underlined word/s and rewrite the following sentence. Companies sell fresh shares for the first time to the public in the **seco…Preview
- Q2Study the following case/situation and express your opinion. | Joy ltd. company is a newly incorporated company. It wants to raise capital f…Preview
- Q3Distinguish between the following: Primary market and Secondary marketPreview
- Q4Primary market is also known as new issue market. (a) True (b) FalsePreview
- Q5Explain the following term/concept. Secondary marketPreview
- Q6Justify the following statement. Capital market is useful for the corporate sector.Preview
- Q7Find the odd one. (a) FPO (b) Private Placement (c) Commercial paperPreview
- Q8Explain the following term/concept. Secondary marketPreview
- Q9Justify the following statement. Capital market is useful for the corporate sector.Preview
- Q10A financial market is a market in which people trade ______ and derivatives at low transaction costs. (a) Gold (b) Financial securities (c)…Preview
- Q11Match the pairs. | | Group ‘A’ | | Group ‘B’ | | --- | --- | --- | --- | | (a) | Bonus shares | (1) | Electronic Clearing Service | | (b) |…Preview
- Q12Write a word, or a term, or a phrase which can substitute for the following statement. A bill which is issued by Reserve Bank of India on be…Preview
- Q13Explain the following term/concept. Primary marketPreview
- Q14Study the following case/situation and express your opinion. Mr. Jatin is a practising Company Secretary offering advisory services to compa…Preview
- Q15Distinguish between money market and capital market.Preview
- Q16Write a word, or a term, or a phrase which can substitute for the following statement. A bill which is issued by Reserve Bank of India on be…Preview
- Q17Select the correct option from the bracket: | Group ‘A’ | Group ‘B’ | | --- | --- | | (a) .............. | (1) Deposit from Members | | (b)…Preview
- Q18Justify the following statement. There are many participants in money market.Preview
- Q19Distinguish between the following: Primary market and Secondary marketPreview
- Q20Attempt the following: Explain any five examples of credit instruments of the money market.Preview