Interview questions for capital market & NSE Essay

What is jacket Market?Capital securities industry is a market of securities. Where a teleph wizardr and government raise long term funds. it is a market where money invested more them one year. In this we include the extraction market and bond market Definition of DebtAn amount of money borrowed by one party from another. Many corporations/individuals use debt as a method for making large purchases that they could not hold be upset normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usu all in ally with interest.Definition of uncomplicated MarketA market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets ar facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale right o ff to investorsDefinition of Secondary MarketA market where investors purchase securities or assets from other investors, rather than from emergence companies themselves. The national exchanges such as the New York Stock Exchange and the NASDAQ argon secondary markets.Secondary markets cost for other securities as well, such as when funds, investment banks, or entities such as Fannie Mae purchase mortgages from consequence lenders. In any secondary market trade, the cash proceeds go to an investor rather than to the underlying alliance/entity directly.What do you imply by Equity investment?Answer An equity investment generally refers to the purchase and holding ofshares of stock on a stock market by individuals and firms in anticipation of income from dividends and bang-up gains, as the value of the stock rises. It may also refer to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup company What do you mean by stock market or equi ty market?Answer A stock market or equity market is a public entity (a loose network of economic transactions, not a somatogenetic facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed 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 monetary markets for assets mixed 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 services 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 shares issued by companies, unit trusts, derivatives, pooled inve stment products and bonds. What do you mean by Financial commandment?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 trunk. 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 fix 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 authorities* Commodity Futures Trading charge (CFTC)* National Credit Union Administration (NCUA)* Financial Services Authority (FSA), United KingdomWhat do you mean by NSE?Answer The National Stock Exchange was incorporated in 1992 by industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. Trading at NSE stinker be classified under two immense categories (a) Wholesale debt market and(b) Capital market.What are the advantages of NSE? (National Stock Exchange)NSE has several 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 transparency in the stock market operations, with the support of total computerized ne twork. Why India needs economic planning?One of the major objective of planning in India is to increase the rate of economic development, implying that increasing the rate of capital formation by aggrandisement the levels of income, saving and investment. However, increasing the rate of capital formation in India is beset with a number of difficulties. race are poverty ridden. Their aptitude to save is extremely low due to low levels of income and high impulse to consume. Therefor, the rate of investment is low which leads to capital deficiencyand low productivity. Low productivity means low income and the vicious circle continues. Thus, to break this vicious economic circle, planning is inevitable for India. What are general objectives of Indian Planning?The long-term general objectives of Indian Planning are as follows * Increasing National Income* reduce inequalities in the distribution of income and wealth * Elimination of poverty* Providing additional employment and* All eviating bottlenecks in the areas of agricultural production, manufacturing capacity for producers goods and balance of payments.*