Business Studies

Financial Markets

Question:

What factors affect the movement of stock indices? Elaborate on the nature of these factors.

Answer:

The fall in the domestic market, as given in the above table, can significantly be attributed to the market sentiments of world market. We can see the world indices and NSE indices are moving in the same direction.

previuos
next

Financial Markets

Q 1.

Explain the various segments of NSE.

Q 2.

Explain the objectives and functions of SEBI.

Q 3.

State the objectives of the NSE.

Q 4.

What relationship do you see between the movement of indices in world markets and NSE indices?

Q 5.

Give details of all the indices mentioned above, you can find information on the web or business magazines.

Q 6.

Explain the various money Market Instruments.

Q 7.

What is a Treasury Bill?

Q 8.

What conclusions can you draw from the various movements of NSE stock indices?

Q 9.

What are the regulations of SEBI that the company must comply with?

Q 10.

What are the objectives of the SEBI?

Q 11.

What factors affect the movement of stock indices? Elaborate on the nature of these factors.

Q 12.

What are the methods of floatation in Primary Market?

Q 13.

‘R’ Limited is a real estate company which was formed in 1950. In about 56 years of its existence the company has managed to carve out a niche for itself in this sector. Lately, this sector is witnessing a boom due to the fact, that the Indian economy is on the rise. The incomes of middle class are rising. More people can afford to buy homes for themselves due lo easy availability of loans and accompanying tax concessions.
To expand its business in India and abroad the company is weight various options to raise money through equity offerings in India. Whether to tap equity or debt, market whether to raise money from domestic market or international market or combination of both? When their to raise the necessary finance from money market or capital market. It is also planning to list itself in New York Stock Exchange to raise money through ADR’s. To make its offerings attractive it is planning to offer host of financial plans products to its stakeholders and investors and also expand it’s listing at NSE after complying with the regulations of SEBI.

1. What benefits will the company derive from listing at NSE?

Q 14.

What are the functions of a Stock Exchange?

Q 15.

What are the functions of a Financial Market?

Q 16.

Explain the Capital Market reforms in India.

Q 17.

“Money Market is essentially a Market for short term funds.” Discuss.

Q 18.

What is the OTCEI?

Q 19.

What do you mean by a stock index? How is it calculated?

Q 20.

How does the SEBI exercise control over ‘R’ Limited in the interest of investors?

Q 21.

Distinguish between Capital Market and Money Market.