Module 1 Flashcards
Various companies and industries raise funds for their ______ requirement through the money market.
short term
Various companies and industries raise funds for their short term requirement through the ______
money market
However, when they need funds for long term, ________ is their source.
capital market
_______ is the market for long term investments.
Capital market
Here, the buyers and sellers transact in capital market instruments like ______, debt instruments, debentures, shares, derivative market instruments like swaps, ETFs, futures, options, etc.
bonds
The capital market has two types, ______ and _______.
Primary Market and Secondary Market
The ______ is also called “New Issue Market” where a company brings Initial Public Offer (IPO) to get itself listed on the stock exchange for the first time.
primary market
The primary market is also called _______ where a company brings Initial Public Offer (IPO) to get itself listed on the stock exchange for the first time.
New Issue Market
The primary market is also called “New Issue Market” where a company brings ______ to get itself listed on the stock exchange for the first time.
Initial Public Offer (IPO)
In the ______, the mobilization of funds is done through right issue, private placement and prospectus.
primary market
the primary market, the ______ of funds is done through right issue, private placement and prospectus.
mobilization
the primary market, the mobilization of funds is done through right issue, ______ and prospectus.
private placement
the primary market, the mobilization of funds is done through right issue, private placement and ______.
prospectus
The funds collected by the company in the ____ is used for its future expansion and growth.
IPO
The funds collected by the company in the IPO is used for its _____ and growth.
future expansion
The funds collected by the company in the IPO is used for its future expansion and _____.
growth
_____ help the investors to put their savings into companies that are looking to expand their enterprises.
Primary markets
Primary markets help the ____ to put their savings into companies that are looking to expand their enterprises.
investors
Primary markets help the investors to put their savings into companies that are looking to ____ their enterprises.
expand
Primary markets help the investors to put their savings into companies that are looking to expand their ______.
enterprises
The ____ is a type of capital market where the securities that are already listed on the exchange are traded.
secondary market
The trading done on the _____ and over the counter falls under the secondary market.
stock exchange
The trading done on the stock exchange and over the counter falls under the _____.
secondary market
Examples of secondary markets are ____ and _____.
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)
In the primary market, the prospectus is used to _____.
raise funds
The company invites the investors and the general public through an advertisement known as the _____ to subscribe to the shares of the company.
prospectus
If the company receives a high subscription, then allotment is done to them on _____.
pro-rata basis
Some companies try to avoid the IPO route to raise funds as it is very costly. Instead, they give investment opportunity to few individuals via _____.
private placement
The structure of capital market allows the companies in need of additional funds to first approach their current investors before looking at the other sources for finance.
Right Issue
The _____ gives the current investors the first opportunity to make additional investments in the company.
right issue
E-IPO means _____.
Electronic Initial Public Offer
____ is an agreement between the stock
exchange and the company to offer its shares to the public through online mode.
E-IPO
