Interview questions for capital market & NSE Essay

What is capital market placeplace?Capital grocery store is a market of securities. Where a guild and presidential term raise long term funds. it is a market where m singley invested more them superstar year. In this we include the bloodline market and bond market Definition of DebtAn amount of capital borrowed by one party from another. Many corporations/individuals use debt as a method for reservation large purchases that they could not afford under normal circumstances. A debt organisation gives the borrowing party permission to borrow money under the chequer that it is to be paid back at a later date, unremarkably with interest.Definition of Primary MarketA market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity base securities. Primary markets ar facilitated by underwriting groups, which consist of enthronisation banks that will denounce a beginning price range for a given protective cover ing and then oversee its sale directly to investorsDefinition of Secondary MarketA market where investors purchase securities or assets from other investors, kind of than from issuing companies themselves. The national exchanges such as the New York Stock Exchange and the NASDAQ ar secondary markets.Secondary markets exist for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash proceeds go to an investor rather than to the underlying company/entity directly.What do you close by Equity investment?Answer An equity investment generally signifys to the buying and holding ofshares of line on a linage market by individuals and firms in prognostication of income from dividends and capital gains, as the value of the computer memory rises. It may also refer to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup comp any What do you ungenerous by stock-taking market or equity market?Answer A stock market or equity market is a unexclusive entity (a loose ne bothrk of scotch transactions, not a physical quickness or discrete entity) for the trading of company stock (shares) and derivatives at an agree price these are securities listed on a stock exchange as well as those only traded privately. What do you mean by money market?Answer The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames.What do you mean by stock exchange?Answer A stock exchange is an entity that provides serve for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include sh ares issued by companies, unit trusts, derivatives, pooled investment products and bonds. What do you mean by Financial regulation?Answer Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial agreement. This may be handled by either a government or non-government organization What are the Aims of financial regulation?Answer Aims of regulationThe aims of financial regulators are usually* To enforce applicable laws* To prevent cases of market manipulation, such as insider trading * To ensure competence of providers of financial services * To protect clients, and investigate complaints* To maintain confidence in the financial system* To reduce violations under lawsList some financial regulatory administration* Commodity Futures Trading Commission (CFTC)* National Credit Union presidency (NCUA)* Financial Services Authority (FSA), Unite d KingdomWhat do you mean by NSE?Answer The National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and coronation Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercialized banks and others. Trading at NSE can be classified under two broad categories (a) Wholesale debt market and(b) Capital market.What are the advantages of NSE? (National Stock Exchange)NSE has several(prenominal) advantages over the traditional trading exchanges. They are as follows * NSE brings an integrated stock market trading network across the nation. * Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities. * Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational trans parency in the stock market operations, with the support of total computerized network. Why India needs economic planning?One of the major objective of planning in India is to profit the rate of economic development, implying that increasing the rate of capital formation by raising the levels of income, saving and investment. However, increasing the rate of capital formation in India is beset with a number of difficulties. People are meagreness ridden. Their potentiality to save is extremely low due to low levels of income and high appetency to consume. Therefor, the rate of investment is low which leads to capital deficiencyand low productivity. dispirited productivity means low income and the toxicant circle continues. Thus, to break this vicious economic circle, planning is inevitable for India. What are general objectives of Indian proviso?The long-term general objectives of Indian Planning are as follows * increase National Income* Reducing inequalities in the distribut ion of income and wealth * Elimination of poverty* Providing additional employment and* Alleviating bottlenecks in the areas of agricultural production, manufacturing capacity for producers goods and balance of payments.*