Business and governance part- (30)

Business and governance part- (30) - (ii The facility for...

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165 (ii) The facility for convenient purchase and sale of securities at the stock exchange provides support to new issue market. This helps in promotion and expansion of industrial activity, which in turn contributes, to increase in the rate of industrial growth. (iii) The Stock exchanges facilitate realisation of financial resources to more profitable and growing industrial units where investors can easily increase their investment substantially. (iv) The volume of activity at the stock exchanges and the movement of share prices reflect the changing economic health. (v) Since government securities are also traded at the stock exchanges, the government borrowing is highly facilitated. The bonds issued by governments, electricity boards, municipal corporations and public sector undertakings (PSUs) are found to be on offer quite frequently and are generally successful. Short Answer Type Questions 1. Differenciate between money market and capital market. Ans: Capital Market differs from money market in many ways. While money market is related to short-term funds, the capital market related to long term funds. While money market deals in securities like treasury bills, commercial paper, trade bills, deposit certificates, etc., the capital market deals in shares, debentures, bonds and government securities.
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  • Spring '14
  • DeborahDubin
  • Stock exchange, stock exchanges, National Stock Exchange of India

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