Class 12 Finance Important Chapter 11 Stock Exchange or Secondary Market

Class 12 Finance Important Chapter 11 Stock Exchange or Secondary Market Solutions English Medium As Per The New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Important Solutions in English and select need one. AHSEC Class 12 Finance Additional Notes Download PDF. HS 2nd Year Banking Additional Solutions.

Class 12 Finance Important Chapter 11 Stock Exchange or Secondary Market

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Important Solutions English Medium for All Chapters, You can practice these here.

Stock Exchange or Secondary Market

Chapter: 11

IMPORTANT QUESTION AND ANSWER

Short Questions and Answers: 

1. What is a stock exchange?

Ans: A stock exchange is a marketplace where shares, debentures, bonds, and other securities are bought and sold. It provides a regulated and transparent platform for trading, helping companies raise funds and investors buy or sell securities.

2. What is the secondary market?

Ans: The secondary market refers to the platform where existing securities are traded among investors after being initially issued in the primary market. Stock exchanges like BSE and NSE are examples of secondary markets.

3. Name any three stock exchanges in India.

Ans: Three stock exchanges in India are:

• Bombay Stock Exchange (BSE).

• National Stock Exchange (NSE).

• Calcutta Stock Exchange (CSE).

4. What do you mean by listed securities?

Ans: Listed securities are those shares, bonds, or debentures that have been officially admitted for trading on a recognized stock exchange, after fulfilling all necessary regulatory requirements.

5. What is the function of a broker in a stock exchange?

Ans: A broker acts as an agent for buying and selling securities on behalf of investors. Brokers are registered members of the stock exchange and ensure proper execution of trades and related services.

6. What is meant by ‘liquidity of capital’?

Ans: Liquidity of capital means the ease with which securities can be converted into cash. Stock exchanges ensure liquidity by providing a ready market where investors can quickly buy or sell securities.

7. State any two features of a stock exchange.

Ans: (a) It is a regulated market for buying and selling securities.

(b) Only listed securities are traded through authorized brokers.

8. What is the role of SEBI in the stock exchange?

Ans: SEBI (Securities and Exchange Board of India) regulates the functioning of stock exchanges, ensuring transparency, investor protection, and fair trading practices.

9. Who is a sub-broker?

Ans: A sub-broker is an intermediary who assists the main broker by mediating between clients and the stockbroker, helping clients complete transactions and related paperwork.

10.  What does ‘listing of securities’ mean?

Ans: Listing of securities means officially admitting a company’s shares or debentures for trading on a recognized stock exchange, allowing public investors to buy and sell them.

Fill in the Blanks:

1. A stock exchange is a market where __________, __________, __________, and other securities are bought and sold.

Ans: Shares, Debentures, Bonds.

2. The stock exchange is also called the __________ market because the subsequent trading in securities is done here.

Ans: Secondary.

3. According to Securities Contracts (Regulation) Act 1956, a stock exchange is an association, organization, or body of individuals established for the purpose of assisting, regulating, or controlling the business of __________, __________, and __________ in securities.

Ans: Buying, Selling, Dealing.

4. The first virtual stock exchange in the world is __________, which began operations in 1971.

Ans: Nasdaq.

5. Only __________ securities are traded on a particular stock exchange.

Ans: Listed.