Basics of Capital Market Quiz
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Questions and Answers

Who are the participants in the financial markets that provide a variety of financial products and services to cater to the needs of the commercial sector?

  • Alternate Investment Funds
  • Qualified Institutional Buyers (correct)
  • Foreign Portfolio Investors
  • Anchor Investors
  • Which market deals with short-term funds and securities?

  • Capital Market
  • Money Market (correct)
  • Primary Market
  • Secondary Market
  • Which type of financial instrument represents ownership in a company?

  • Preference Shares
  • Debentures
  • Bonds
  • Equity Shares (correct)
  • Which regulatory body is responsible for regulating the securities market in India?

    <p>SEBI</p> Signup and view all the answers

    Which category of investment institution includes entities like Venture Capital, Private Equity, Hedge Funds, and Pension Funds?

    <p>Alternate Investment Funds</p> Signup and view all the answers

    Study Notes

    Participants in Financial Markets

    • Financial markets consist of various participants, including banks, brokerages, investment firms, and insurance companies, which provide diverse financial products and services.
    • These participants cater specifically to the commercial sector, addressing their unique financing needs and investment requirements.

    Money Market

    • The money market is where short-term funds and securities are traded.
    • It primarily deals with instruments with maturities of one year or less, such as Treasury bills and commercial paper.

    Ownership Representation

    • Equity instruments represent ownership in a company.
    • Common stocks are typical examples, granting shareholders voting rights and potential dividends based on company performance.

    Regulatory Body in India

    • The Securities and Exchange Board of India (SEBI) is the regulatory authority responsible for overseeing the securities market in India.
    • SEBI's role includes protecting investors' interests, promoting the development of the securities market, and regulating its activities.

    Categories of Investment Institutions

    • Alternative investment institutions include categories such as Venture Capital, Private Equity, Hedge Funds, and Pension Funds.
    • These institutions typically invest in a range of assets and target specific investment strategies for growth and risk management.

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    Description

    Test your knowledge of the basics of capital markets, including financial instruments, market participants, and key concepts such as money market and primary market.

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