Capital market
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Questions and Answers

Methods of marketing securities 8

Public issue by prospectus, offer for sale, placement method , tender method , over the counter, rigth issue , bonus issue, book building

Primary market intermediate

Merchant Bank ,underwriters, banker to an issue, registrar to an issue, share transfer agents , debenture trustees brokers , portfolio manager

Types of preference shares

Cumulative, non cumulative, redeemable, irredeemable ,participating, non participating ,convertible ,non convertible

Function of stock exchange

<p>Insure liquidity, continuous market for security ,evaluation of security, mobilizing surplus saving, helpful in rasing new capital, safe in dealing, listing of security platform for public debt, clearing house of business information, smoothen the price movement, investor protection</p> Signup and view all the answers

Objectives of listing of security

<p>Ensure supervision and control of dealings in security, protect interest of shareholder and investors, avoid concentration of economic power, assure marketing facilities for the security, insure liquidity of security, regulate dealings in security, require promoters to have a reasonable stake in the company</p> Signup and view all the answers

Requirements for listing security

<p>1)Memorandum and article of association, 2)copies of all prospectus or statement in Lieu of prospectus, 3)copies of balance sheet audit it accounts agreement with promoters underwriters brokers, 4)letter of consent from controller of capital issues now replaced with SEBI, 5)details of share and debentures issued and share forfeited,6) issue of bonus and dividend declared 7) history of the company in brief 8) agreement with managing director 9) an Undertakeing regarding compliance with the provisions of the companies act and security contract act 1956, 10) list of the highest 10 holder of each class or kind of security of the company</p> Signup and view all the answers

Advantage of listing of security

<p>0 publicity of security, protection of investors interest , ensure liquidity , better goodwill</p> Signup and view all the answers

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