Financial Markets
Differentiate between ‘Primary Market’ and ‘Secondary Market’.
Difference between Primary Market and Secondary Market:
Basis of Difference |
Primary Market |
Secondary Market |
1. Issue |
Securities (like shares) are issued for the first time. |
There is no issuing of the fresh securities but trading of the already issued securities. |
2. Buying and Selling |
Investors can only buy securities. |
Both buying and selling can take place. |
3. Specified Place |
It has no specified place. |
It has a special and fixed place known as stock exchange. |
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Explain the various money market instruments.
What is meant by ‘Money Market’? List any four money market instruments.
‘‘Money Market is essential market for short term funds.’’ Discuss.
What is meant by ‘Treasury Bill’ and ‘Trade Bill’?
What is meant by ‘Commercial Paper’ and ‘Certificate of Deposit’?
What is Money Market?
Give two examples of Floatation Costs.
Name any two buyers of Commercial Papers.
What is meant by ‘Near Money’?
Name the one sub-market of money market.
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