Primary and Secondary Market Quiz

An issue of securities where anyone can subscribe. It's when a company offers new shares to potential investors.

A company's first public offering of shares.

A public offering of additional shares by a company already listed.

The market where new financial instruments are offered by companies to raise capital.

A financial activity where someone (underwriter) guarantees part or all of a security issue's sale.

An underwriter agrees to buy a specific number of shares, whether the public subscribes to them or not.

A method of issuing securities to a limited number of investors.

The process of selling securities to investors.

An agreement where the underwriter can buy or sell shares from the market to stabilize the share price after an IPO, if it falls below or goes significantly above the issue price.

A type of private placement where a listed company issues securities to specific individuals or groups at a price higher than the average of the weekly stock price.

A type of private placement where a listed company issues shares to qualified institutional buyers (QIBs) like mutual funds or insurance companies.

Rules for a Qualified Institutional Placement (QIP), including shareholder approval, management by a merchant banker, and a placement document with all key information.

Qualified Institutional Placement (QIP) involves issuing shares to specifically defined institutional investors, like mutual funds or insurance companies, who meet specific criteria.

QIP involves issuing shares to qualified institutional buyers (QIBs), while Preferential Allotment allows the company to choose any specific individuals or groups.

These methods allow companies to raise capital privately, offering flexibility and potentially reaching investors with specific expertise.

Application Supported by Blocked Amount. A system where the required amount for shares applied in a public offering is blocked in the investor's bank account until share allocation.

They assist companies in issuing shares to the public, helping them with things like designing the capital structure, drafting the prospectus, and marketing the issue.

The lead merchant banker in a book building process. They manage the process of collecting bids and setting the final offer price for the shares.

They agree to buy a certain number of shares in a public offering, guaranteeing the company a minimum level of funding.

They handle the registration of new shareholders, recording share transfers, and maintaining shareholder records.

They help investors buy and sell shares in the public offering, often providing guidance and advice.

A group of financial institutions working together to manage a large public offering. They share the responsibility and risk.

They hold shares electronically, ensuring safe and secure trading in the market.

Guarantee to purchase specific shares if the public doesn't subscribe to a company's issue.

Fee charged by underwriters for their service of guaranteeing the successful sale of a company's shares.

Marketing new issues, reaching out to investors, and handling applications for the shares being offered.

Assisting with tasks such as preparing documentation, managing shareholder lists, and preparing for the launch of the offering.

Processing applications, allocating shares, and issuing certificates of allotment to successful applicants.

A major stock exchange in India, formally known as the Bombay Stock Exchange, established for trading securities.

To provide comprehensive nationwide securities trading facilities to investors, using automated screen-based trading and post-trade clearing and settlement.

Financial institutions like IDBI, ICICI, IFCI, GIC, LIC, SBI etc. with IDBI leading the pack.

A fully automated screen-based trading system where anyone can participate from anywhere, connected to the main exchange electronically.

A trading facility for various debt instruments like government securities, bonds, and certificates of deposit.

Only members recognized by NSE, requiring experience in financial services and a minimum net worth.

A segment of the NSE where equity instruments like stocks and shares are traded.

The National Stock Exchange of India (NSE) operates in different segments, including the Wholesale Debt Market (WDM) for corporate bonds, the Capital Market for equities and convertible debentures, and Derivatives - F&O (Futures & Options) and Currency Derivatives.

NSE has several subsidiaries that provide essential services, like clearing and settlement (NSCCL), depository services (NSDL), index creation (IISL), and IT solutions (NSE.IT).

The Bombay Stock Exchange (BSE) was established in 1875, making it the oldest stock exchange in Asia. It's also known as Dalal Street.

BSE is governed by a Board of Directors with representation from professionals, the public, market intermediaries, and SEBI. It also has a management team and a Derivatives-Governing and Clearing council.

BSE has been instrumental in fostering the growth of Indian businesses by providing a platform for capital raising. It's the world's largest exchange by listed companies, among the top 10 by market capitalization, and one of the most active exchanges globally.

SENSEX, BSE's benchmark index, was launched in 1986. It tracks the performance of 30 large and liquid Indian companies.

In 1995, BSE transitioned from open outcry trading to an electronic trading system called BSE On-line Trading (BOLT), facilitating faster and more efficient transactions.

NSE is a newer stock exchange known for its technology and electronic trading platform, while BSE, the older exchange, is known for its large number of listed companies and its historical importance in India.