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You are working as a financial advisor....

You are working as a financial advisor. One of your clients asked, how securities are sold in secondary market. Give details in this context.

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In secondary market, securities are not directly issued by the company to investors. The securities are sold by existing investors to other investors. Sometimes, the investor is in need of cash and another investor wants to buy the shares of the company, that he could not get directly from the company.
Then, both the investors can meet in secondary market and exchange securities for cash through an intermediary called broker.
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ARIHANT PUBLICATION-FINANCIAL MARKET-CHAPTER PRACTICE (SHORT ANSWER TYPE QUESTIONS)
  1. Discuss in detail the type of market which deals in previously issued...

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  2. What is meant by right is issue of shares ?

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  3. State the esential features of a stock exchange.

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  4. What is a depository and what services they offer to the investors ?

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  5. State some of the benefits, which are offered by depository system.

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  6. Explain any three functions of stock exchange. or Explain any two...

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  7. What are the advantages of screen based tradings system ?

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  8. Explain the working of a Demat Account.

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  9. What are the objectives NSE?

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  10. What is OTCEI? Explain the advantages of OTCEI ?

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  11. What were the objectives behind establishment of NSEI?

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  12. What do you understand by insider trading ?

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  13. What does the abbreviation 'SEBI' stand for ? Explain the term SENSE...

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  14. State any three 'protective functions' of Securities and Exchange Boar...

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  15. Why are money market instruments more liquid as compared to capital ma...

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  16. You are working as a financial advisor. One of your clients asked, ho...

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  17. The directors of a company want to modernise its plant and machinery b...

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  18. Stock market imparts liquidity to investment'. Comment.

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  19. SEBI is the watch dog of security market. Do you agree ? Give three ...

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  20. Mr Axe, one of the directors of XYZ Ltd, knew that bonus shares were...

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