Mr. Naveen and Mr. Sameer are Directors of Baijanta Ltd. Company, and discussing how to raise the funds in the market. Mr. Sameet said that they wanted to earn a high yield of return irrespective of the risk involved in it.
(i) Which market were Mr. Naveen and Mr. Sameer talking about?
(ii) What are its sub-markets or components?
(iii) How can Mr. Sameer raise the funds?
Mr. Naveen and Mr. Sameer are Directors of Baijanta Ltd. Company, and discussing how to raise the funds in the market. Mr. Sameet said that they wanted to earn a high yield of return irrespective of the risk involved in it.
(i) Which market were Mr. Naveen and Mr. Sameer talking about?
(ii) What are its sub-markets or components?
(iii) How can Mr. Sameer raise the funds?
(i) Mr. Naveen and Mr. Sameer are talking about raising funds from the capital markets which provides long-term capital money and provides higher returns for their investment through relevant profits.
(ii) The sub-markets or components of capital markets are primary and secondary markets and the financial instruments used in these markets are equity and debt.
(iii) Mr. Sameer can issue new securities in primary markets. They can make a public issue and become a listed company in the stock exchange. They could also consider e-IPOs of Electronic Initial Public Offer where investors can bid for new shares through the internet.
(i) Mr. Naveen and Mr. Sameer are talking about raising funds from the capital markets which provides long-term capital money and provides higher returns for their investment through relevant profits.
(ii) The sub-markets or components of capital markets are primary and secondary markets and the financial instruments used in these markets are equity and debt.
(iii) Mr. Sameer can issue new securities in primary markets. They can make a public issue and become a listed company in the stock exchange. They could also consider e-IPOs of Electronic Initial Public Offer where investors can bid for new shares through the internet.
