ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The equity market is ____ .
A
a financial market where the trading of debt instruments takes place.
B
a financial market in which shares are issued and traded, either through exchanges or over-the-counter markets.
C
a financial market where buyers and sellers of securities(or their agents or brokers) meet in one central location to conduct trades.
D
is a financial market in which long-term debt and equity instruments are traded.
Explanation: 

Detailed explanation-1: -An equity market is a market in which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy.

Detailed explanation-2: -The equity market is a marketplace for traders where they buy or sell stocks. Investors can invest in public or private stocks. Public stocks are traded on exchanges, unlike private stocks which are traded privately. Initially, when an organization is set up it is private and later it goes on to launch its IPO.

Detailed explanation-3: -Equities are traded in the equity market, also known as the share market. This market is a meeting point for buyers and sellers of stocks and can be either a physical or virtual place. The equities traded in the share market can be public stocks listed in the stock exchange or privately traded stocks.

Detailed explanation-4: -Equity markets: A market where ownership of securities are issued and subscribed is known as equity market. An example of a secondary equity market for shares is the New York (NYSE) stock exchange.

Detailed explanation-5: -An equity market is synonymous with stock market. read more. These stocks are bought and sold either via a stock exchange or over-the-counter (OTC) market. Here, the sale and purchase occur at a specific price. This is the price at which the buyer agrees to buy, and the seller agrees to sell.

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