Identify the name of the mode of investment through which people can invest money in the share market and debentures.

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Solution

The correct option is C Mutual fund
Mutual fund is a mode of investment through which people can invest money in the share market and debentures. It can be equated to a pool of funds. Investors handover their investment capital to a mutual fund institution to invest it in profitable businesses.

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Q. Investment made on shares and debentures is called ________ investment.

A man invests some money in his shares. He invests $60 %$ of his money at $10 %$ . Rs 100 shares at Rs 110 and the rest in $20 %$ . Rs 50 shares at Rs 60. If his total annual income from both the investments is Rs 2000, then his total investment is ____

State the following statement is True or False:

Prospectus is the document, through which a company invites public to invest in the shares or debentures.

"Mission Coach" is a large creditworthy company manufacturing coaches for Indian Railways. It now wants to export these coaches to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expense of floatation cost, the company decides to tap the money market.

(i) Name and explain the money market instrument the company can use for the above purpose.

(ii) What is the duration for which the company can get funds through the instrument?

(iii) State any other purpose for which this instrument can be used.

State the following statement is True or False:

Invitation to the public to invest in shares or debentures of a company is through the prospectus.

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Identify the name of the mode of investment through which people can invest money in the share market and debentures.

The correct option is C Mutual fundMutual fund is a mode of investment through which people can invest money in the share market and debentures. It can be equated to a pool of funds. Investors handover their investment capital to a mutual fund institution to invest it in profitable businesses.

The correct option is C Mutual fund
Mutual fund is a mode of investment through which people can invest money in the share market and debentures. It can be equated to a pool of funds. Investors handover their investment capital to a mutual fund institution to invest it in profitable businesses.