Primary Markets

Q.

___are known as a new issue market as it is the market for new long-term capital securities issued by the company.

1. Primary market

2. Secondary market

3. Money market

4. Capital market

Q.

___ market directly contributes to the capital market.

1. Primary

2. Capital

3. Money

4. None of these

Q.

Sike Ltd., a reputed industrial machines manufacturer, needs rupees twenty crores as additional capital to expand the business. Mr. Amit Joshi, Chief Executive Officer (CEO) of the company, wants to raise funds through equity. The Finance Manager, Mr. Narinder Singh, suggested that the shares may be sold to the public through intermediaries, as the same will be less expensive. Name the method through which the company decided to raise additional capital.

1. Offer through Prospectus

2. Offer for Sale

3. Private Placement

4. Right Issue

Q. market is also known as New Issue Market.

1. Primary
2. Secondary
3. Money

Q. What kind of information is imparted through a prospectus by a company to a prospective investor?

1. Fund requirement
2. Background
3. Past records
4. Legal compliance
5. Assets
6. Liabilities
7. Capital
8. Owners

Q. Only new companies can issue securities in the primary market.

1. True
2. False

Q. Primary market can be used as a platform to issue equity or preference shares.

1. False
2. True

Q. A prospectus is a document issued by a company to impart information about its issue to the public.

1. True
2. False

Q.

Sahil bought a second-hand bicycle for ₹ 3000 and then spent ₹ 1000 on its repairs and then sold it for ₹ 5000. What is the profit or loss %?

1. 20 % profit

2. 22.5 % Loss

3. 25 % profit

4. 25 % Loss

Q. An article is bought for Rs. 620 and sold for Rs. 780. A second article is bought for Rs. 575 and sold for Rs. 437. Similarly, a third article is bought for Rs. 805 and sold for Rs. 883. Find -
i) The total C.P of the three articles.
ii) The total S.P of the three articles.
iii) The profit or loss on the whole three articles

1. i) C.P. = Rs. 2000
   ii) S.P. = Rs. 2100
   iii) Profit = 5%
2. i) C.P. = Rs. 2100
   ii) S.P. = Rs. 2000
   iii) Loss = 15%
3. i) C.P. = Rs. 3000
   ii) S.P. = Rs. 3100
   iii) Profit = 5%
4. i) C.P. = Rs. 2500
   ii) S.P. = Rs. 2100
   iii) Loss = 5%