ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Secondary Market deals in:
A
new securities with maturity period less than oneyear
B
new securities with maturity period more than one year
C
existing securities with maturity period less thanone year
D
existing securities with maturity period more thanone year
Explanation: 

Detailed explanation-1: -Capital Market mainly deals in the trading of medium and long-term securities wherein, the maturity period is more than one year.

Detailed explanation-2: -The capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors.

Detailed explanation-3: -Money Market is a financial market where short-term financial assets having liquidity of one year or less are traded on stock exchanges.

Detailed explanation-4: -The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

Detailed explanation-5: -Apart from the stock exchange and OTC market, other types of secondary market include auction market and dealer market.

There is 1 question to complete.