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Doctors Medicines MCQs Q&A

  1. Government rules and regulations
  2. Utilises intermediaries
  3. Link between savers and investment opportunities
  4. Co-promotes state-level venture funds
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1 Answers

Option 4 : Co-promotes state-level venture funds

The correct option is Co-promotes state-level venture funds.

Co-promotes state-level venture funds is not a feature of Indian capital Market
Features of Indian Capital Market are as follows:

  • Serves as link between Savers and Investment Opportunities: As money is transferred from savers to risk-taking borrowers on the capital market, it forms an essential link between the saving and investing processes.
  • LongTerm Investment :The ability to put their hard-earned money into long-term investments is beneficial to investors.
  • Helps in Capital Formation :The capital market provides chances for those investors who have extra funds and wish to store them in an investment, so they can benefit from compound interest.
  • Helps Intermediaries: It requires the assistance of intermediaries, such as brokers, banks, etc., to transfer shares and money from one investor to another, aiding them in running their businesses.
  • Rules and Regulations : The government regulates and controls how the capital markets operate, giving it a secure environment for trading.

Capital Market: A capital market is a location where funding instruments like shares, bonds, debentures, debt instruments, and E T Fs can be traded. It is a way to raise money for private citizens, businesses, and governments.

Types of Capital Market

Primary Market:

  • New securities that are launched in the stock market for the first time are primarily dealt with in the primary market.
  • As a result, the fresh issue market is another name for it.
  • The primary market's principal purpose is to make it easier for corporations to transfer newly issued shares to the general public.
  • Financial institutions, banks, H N I, and others are the key investors in this type of market.

Secondary Market:

  • Also known as the stock market, this market serves as the actual venue for the trading of securities.
  • Here, securities are bought and sold.
  • Current investors sell the securities, while new investors acquire the securities.
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