BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Indian Stock Market deals in____
A
Shares
B
Debentures
C
Forward Contracts
D
All of the above
Explanation: 

Detailed explanation-1: -Stock Exchange is a place where securities are traded (bought and sold) according to specific rules and regulations. These rules are formulated by regulatory bodies which oversee the trading activities in stock exchanges. The securities traded in stock markets are shares, debentures and corporate bonds.

Detailed explanation-2: -The stock exchange in India serves as a market where financial instruments like stocks, bonds and commodities are traded. It is a platform where buyers and sellers come together to trade financial tools during specific hours of any business day while adhering to SEBI’s well-defined guidelines.

Detailed explanation-3: -A block deal is defined as a trade wherein more than 500, 000 shares or shares worth a value exceeding Rs. 5 Crores, of a particular company listed on the exchange, are traded. Block deals may only be conducted during a particular trading window in the early trading hours.

Detailed explanation-4: -Whereas bulk deals are visible to everyone as they are transacted during regular market hours, block deals are transacted in a special trading window and afford a slightly greater degree of privacy to the parties concerned.

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