Page 324 - DMGT207_MANAGEMENT_OF_FINANCES

Unit 14: Capital Market and Financial Institutions

4. Explain the trading system in stock exchanges. Notes
5. What are the key instruments of capital market? Discuss briefly.
6. Write a note on following:
(a) Book building

(b) Different types of debentures
(c) Sweat equity shares
(d) Derivatives
7. Analyze the importance of capital market in India.

8. Differentiate between:
(a) Equity share and Preference share
(b) Debentures and Derivatives
(c) Primary Market and Secondary market

(d) Money market and Capital market
9. Describe the policy initiatives that have been undertaken in the secondary market during
last few years.

10. Comment: “The Indian capital market acts as an intermediary to mobilize savings and to
channelize the same for productive use consistent with national priorities.”
11. “Mutual funds companies create the market.” Do you agree with this statement?

12. Discuss the role of financial institutions.
13. Explain the different types of financial institutions in India.
14. Describe the key regulatory bodies of financial institutions.

Answers: Self Assessment

1. New Issue Market 2. Distribution

3. Two 4. Two
5. Book Building 6. Origination
7. Capital 8. False
9. True 10. True
11. False 12. True

13. Central Bank 14. Four
15. EXIM 16. Large scale corporate, cooperative
17. Banks 18. Non banking financial companies (NBFCs)

19. Sugar, textile

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