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How to Overcome Fear? | Stock Market | C...

How to Overcome Fear? | Stock Market | CA Rachana Ranade | Sandeep Maheshwari | #shorts

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The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital to be readily available, investors need to have an easy exit route. Aliquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long-term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short-sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts. Only short-term buyers or sellers provide effective exit route to the primary market.

The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital to be readily available, investors need to have an easy exit route. Aliquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long-term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short-sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts. Active secondary market provides liquidity to the transactions in primary market.

The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital to be readily available, investors need to have an easy exit route. Aliquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long-term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short-sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts. Players in the primary market generally borrow funds and earn money by quick disposal in the secondary market.

The main benefit to the economy from an active stock market is the ready availability of risk capital for investment in equities through the primary market. For that risk capital to be readily available, investors need to have an easy exit route. Aliquid secondary market provides an easy exit route through the active involvement of buyers and sellers. It does not matter whether these buyers and sellers have short or long-term investment horizons. Liquidity in the market is enhanced by leveraged players who either borrow to play the market or achieve a similar result through futures contracts whose economic value includes financing costs. Short-sellers confer a similar benefit by borrowing stock or achieving the same result through futures contracts. Inference : Passive stock market enhances availability of capital. 1) If the inference is definitely true' i.e. it properly follows from the statement of facts given. 2) if the inference is probably true though not definitely true' in the light of the facts given. 3) If the data are inadequate, le from the facts given you cannot say whether the inference is likely to be true or false 4) If the inference is probably false", though not definitely false' in the light of the facts given.

Rajiv wants to start a whole safe buisness of readymade garments, but he is hesitating as it involves various problems such as searching for customers, for moving goods from place of production to market , informing customers about new designs and varieties added every season, threat of risk loss by fire or accident, storing the excess stock of goods etc. He appraoches his friend sandeep who explained him about some branches of commerce, which can help Rajiv to over come his hesitation. (a) State the type of business Rajiv is planning to start. (b) State which dimension of business can help Rajiv to overcome these hindrances. (c) Specify different types of Auxiliaries to trade which can help Rajiv to overcome his problems. Quote the line for each type from above para.