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Financial Markets

Question
CBSEENBS12004541
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A company does window dressing in its financial statement to attract investors and creditors. Is it correct in your opinion? Which values are affected here?

Answer
Short Answer

 (i) To cheat the investors/lenders by providing them false information — fraudulent activities.

(ii) Possibility of overcapitalization.

(iii) Dissatisfaction amongst the employees.

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Some More Questions From Financial Markets Chapter

Explain the Demand Side and Supply Side of the Financial Market.

What is meant by Financial Market?

What is meant by ‘Financial Assets’?

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.

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