Commerce Free Expo 2020

5a)
1. It promotes the Habits of Savings and Investment
2. It gives Better Allocation of Capital
3. Pricing of Securities
4. Spreading of Equity Cult

(5a) Functions of Stock exchange
[PICK ANY FOUR]

*1. Continuous market for securities*
The Investors are able to invest in good securities and in case of any risk, it enables people to switch over from one security to another. So stock markets provides a ready and continuous opportunities for securities.

*2. Evaluation of securities*
It the stock exchange, the prices of securities clearly indicate the performance of the companies. It integrates the demand and supply of securities in an effective manner. It also clearly indicates the stability of companies. Thus, investors are in a better position to take stock of the position and invest according to their requirements.

*3. Mobilizes savings*
The savings of the public are mobilized through mutual funds, investments trusts and by various other securities. Even those who cannot afford to invest in huge amount of securities are provided opportunities by mutual funds and investment trusts.

*4. Healthy speculation*
The stock exchange encourages healthy speculation and provides opportunities to shrewd businessmen to speculate and reap rich profits from fluctuations in security prices. The price of security is based on supply and demand position. It creates a healthy trend in the market. Any artificial scarcity is prevented due to the rules and regulations of the market.

*5. Mobility of funds*
The stock exchange enables both the investors and the companies to sell or buy securities and thereby enable the availability of funds. By this, the money market also is strengthened as even short-term funds are available. The banks also provide funds for dealing in the stock exchanges.
6a)
1. Provides Technical Support To Exporters
2. Simplifies Export Procedures
3. Provides Grants And Incentives
4. Simplifies Export Procedures
5. Provides Exportable Products’ List

5a
✍️Fund mobilization
✍️Sales of securities
✍️Facilitate transfer of shares
✍️Financial market for investment
[
5a
✍️Fund mobilization
✍️Sales of securities
✍️Facilitate transfer of shares
✍️Financial market for investment
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(1ai)
Pick 4
(1) direct mail
(2) newspapers and magazines
(3) radio advertising
(4) television advertising
(5) film advertising (6) outdoor advertising
(7) window display
(8) fairs and exhibition and
(9) specially advertising!

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(2a)
- Cartel is monopolistic in nature.
- It is the established by independent producers of similar product.
- They allocate quotas to members.
- They restrict output so as to force the price up.
- Competition is removed.
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(5a) Functions of Stock exchange
[PICK ANY FOUR]

*1. Continuous market for securities*
The Investors are able to invest in good securities and in case of any risk, it enables people to switch over from one security to another. So stock markets provides a ready and continuous opportunities for securities.

*2. Evaluation of securities*
It the stock exchange, the prices of securities clearly indicate the performance of the companies. It integrates the demand and supply of securities in an effective manner. It also clearly indicates the stability of companies. Thus, investors are in a better position to take stock of the position and invest according to their requirements.

*3. Mobilizes savings*
The savings of the public are mobilized through mutual funds, investments trusts and by various other securities. Even those who cannot afford to invest in huge amount of securities are provided opportunities by mutual funds and investment trusts.

*4. Healthy speculation*
The stock exchange encourages healthy speculation and provides opportunities to shrewd businessmen to speculate and reap rich profits from fluctuations in security prices. The price of security is based on supply and demand position. It creates a healthy trend in the market. Any artificial scarcity is prevented due to the rules and regulations of the market.

*5. Mobility of funds*
The stock exchange enables both the investors and the companies to sell or buy securities and thereby enable the availability of funds. By this, the money market also is strengthened as even short-term funds are available. The banks also provide funds for dealing in the stock exchanges.
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6a)
1. Provides Technical Support To Exporters
2. Simplifies Export Procedures
3. Provides Grants And Incentives
4. Simplifies Export Procedures
5. Provides Exportable Products’ List```

5b(i)

*A debenture* is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.

(ii) *A bond* is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer. *

5b(i)

*A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.*
(5a)
*(Choose Any four)*
(i) Through the stock exchange market which is part of the capital market ,fund or capital can be raised or mobilised by companies and investors.

(ii) Stock exchange market provide Financial Market where people can invest their money in shares of companies.

(iii) Stock exchange facilitates the transfer of ownership of shares between investors.

(iv) Stock exchange market Provide Avenue for Government to Raise fund.

(v) The stock exchange market provides professional advice to investors on sales and management of securities

(5b)
(i) Debenture: A debenture is a document which acknowledges a loan generally under the company's seal,bearing a fixed rate of interest . it usually gives security for replacement of loan as well as the interest. Holders of debenture certificate have no voting right

(ii) Bond: A bond is a security issued by a government or its agency or private institution as a means of raising fund. Bonds are usually due to be redeemed at some future date,and they carry a fixed rate of interest.

(iii) Shares: Shares can be defined as an individual portion of the company's capital owned by shareholders. It is the interest which a shareholder has in a company . in other word, a share is a unit of capital measured by a sum of money.

(iv) Stock: Stock can be defined as the bundle of shares or mass of capital which can be transferred in fractional amount. They are always fully paid ,e.g it can be quoted per #100 nominal value.