Financial Markets — Part 2: Capital Market, Stock Exchange and SEBI: visual lesson, CBSE Class 12 Business Studies

Lesson

Capital market, stock exchange and SEBI

Part 2 — the capital market, primary and secondary markets, floatation, the stock exchange, demat and SEBI.

In this lesson you will

Distinguish the money market from the capital market, and the primary from the secondary market
Explain five methods of floatation of new issues
Explain the functions of a stock exchange and the trading and settlement procedure
Classify the functions of SEBI as protective, developmental or regulatory

Part 2 at a glance

Concept

Table comparing the money market and the capital market on duration, instruments, investment outlay, liquidity and safety, and expected return
Basis	Money market	Capital market
Duration	Up to one year	Medium and long term
Instruments	T-bills, CP, CD, call money, commercial bills	Shares, debentures, bonds
Investment outlay	Large sums	Small amounts are possible
Liquidity and safety	Higher	Lower
Expected return	Lower	Higher

Diagram

The company gets money only in the primary market.