List of top Business Studies Questions on Financial Markets

State any three protective functions of Securities and Exchange Board of India (SEBI).

Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the following :
(i) Participants
(ii) Instruments
(iii) Duration

State any three objectives of Securities and Exchange Board of India.

State any three points of differences between ‘Primary Market’ and ‘Secondary Market’.

Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the following: (i) Investment outlay (ii) Liquidity (iii) Safety.

State any three development functions of Securities and Exchange Board of India (SEBI).

Read the following statements : Assertion (A) and Reason (R).
Assertion (A) : The investing public gets a safe and fair deal on the stock market.
Reason (R) : The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative :

The purpose of opening a Demat Account with a Depository Participant (DP) is :

Explain the following as factors affecting 'Financing Decision':
(i) Fixed operating costs
(ii) Cash flow position of the company

______ is the process of holding securities in electronic form.

From the following, identify the one which is not a function of stock exchange:

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative: Assertion (A): When the allocative function is performed well, scarce resources are allocated to the most productive firms.
Reason (R): Allocative function directs funds into their most productive investment opportunity.

Which of the following statement is correct with respect to ’Exchange Mechanism’, a feature of Marketing?

Match the concepts of marketing in Column- I with their respective explanations in Column- II:

Column- I	Column- II
(a) Product concept	(i) Its main focus is on quality, performance and feature of the product.
(b) Selling concept	(ii) Its main focus is on satisfaction of customer needs.
(c) Marketing concept	(iii) Its main focus is on aggressively persuading buyer to purchase the existing product.
(d) Societal concept	(iv) Its main focus is on satisfaction of customer needs and society's well-being.

Choose the correct options from the following:

Which instrument of Money Market is known as "Bridge Financing"?

The National Stock Exchange (NSE) was incorporated in:

The settlement cycle in NSE is days.

Read the following passage and answer the questions.
A finance manager in an outlet raised Rs. 3.5 crore through a mix of debt and equity in a ratio of 4:3 to open a new outlet, but the actual amount required was Rs. 3 crore. The aim of the finance manager is to maximize the shareholder’s wealth. Keeping this in mind, he reinvested the excess amount of Rs. 50 lakh in a fixed deposit carrying 6% interest p.a. while the cost of capital is 10% p.a.

Identify the function performed by SEBI: “It controls insider trading and imposes penalties for such practices.”

The market where existing securities are bought and sold is known as

Identify the correct sequence of trading settlement procedure:
(A) The investor has to sign a broker client agreement.
(B) The investor has to open a ’Demat’ Account.
(C) An order confirmation slip is issued to the investor by the broker.
(D) The broker will then go online and connect to the main stock exchange.
Choose the correct answer from the options given below:

Identify the method of flotation in the Primary Market wherein a company sells securities en bloc. at an agreed price to a broker.

Identify the function performed by Financial Market from the following statement: "Holders of assets can readily sell their financial assets through the mechanism of the financial market."