Primary market and Secondary market, Investors,Issuers,Investories

The video tutorial explains the capital market, divided into primary and secondary markets. The primary market involves companies issuing securities to raise capital, with methods like IPOs, rights issues, and private placements. The secondary market allows trading of these securities, providing liquidity and price discovery. The video also covers the roles of market players like issuers, investors, and intermediaries such as stockbrokers and merchant banks. It highlights the importance of research, risk management, and diversification in mitigating market risks.

What is the primary purpose of the capital market?

• To provide loans to individuals

• To facilitate the buying and selling of goods

• To offer insurance services

• To raise funds for companies through shares and debentures

Which method involves a company offering shares to the public for the first time?

• Private Placement

• Rights Issue

• Initial Public Offering (IPO)

• Bonus Issue

What document provides detailed information about a company's securities offering?

• Prospectus

• Investment Guide

• Annual Report

• Share Certificate

What is a key function of the secondary market?

• Offering tax benefits

• Setting up new companies

• Issuing new shares

• Providing liquidity for existing securities

Which factor can cause volatility in the secondary market?

• Political instability

• Consistent company performance

• High investor confidence

• Stable economic conditions

Who are considered the middlemen in the capital markets?

• Regulators

• Intermediaries

• Investors

• Issuers

Which type of investor typically manages large sums of money on behalf of others?

• Foreign Investors

• Corporate Investors

• Institutional Investors

• Individual Investors